A condominium corporation's decision to spend $500,000 on a cryptocurrency product called “Pink Piggy Investment Group” has resulted in the suspension and possible revocation of the condo manager's license.
The Ontario Condominium Management Regulatory Authority (CMROA) said it had conducted an inspection of Bert Berger's business, L&H Condominium Management, after it "became concerned about allegations regarding the involvement of a licensed condominium manager in the reserve fund investments of a condominium corporation.
In a Globe story published on September 20, Berger alleged that there was “no harm or fault” in the transfer of $500,000 from the reserve fund of a condominium he managed: York Condominium Corp. No. 25 in Etobicoke, Ont. – in a cryptocurrency-backed investment certificate.
The Ontario Condominium Act has strict rules intended to keep reserve funds invested in low-risk financial vehicles.
The CMROA said it would immediately suspend Mr. Berger for “recommending and/or arranging an investment that did not comply with section 115 of the Act,” which covers the types of permissible investments.
The CMRAO also alleges that Mr. Berger contravened applicable law by failing to disclose a financial interest in Pink Piggy Investment Group: “It is further alleged that Mr. Berger provided false or misleading information to the corporation regarding this investment and that Mr. Berger had a material interest in the investment, which was not properly disclosed to the corporation. These actions contravene sections 56, 55 and 52 respectively of the Condominium Management Services Act of 2015 (CMSA).”
In addition to the suspension, the CMRAO announced a “notice of proposal” to revoke Mr. Berger's license to provide condominium services. That process can take years if appealed to the provincial License Appeal Tribunal.
The suspension leaves Mr. Berger's property management company without any licensed condo managers working for it. According to the CMRAO, those corporations that have contracts with L&H have been notified of the situation.
Berger had disputed the allegations in an interview with The Globe in September, but did not respond to requests for comment after his suspension.
