Warning For Mortgage Distressed Owners
January 10, 2009
A Vancouver mortgage news article collection by Vancouver Home Mortgage: Jan 08, 2009
The federal banking regulator has issued a public warning about Sovereign Trust, a Surrey-based firm that is offering to bail out mortgage-distressed homeowners.
The Office of the Superintendent of Financial Institutions said Sovereign Trust claims to have obtained a bank charter from the Tuscarora Nation in New York state, but is not authorized by any federal, state or provincial authority.
It also said the B.C. Financial Institutions Commission, which regulates trust companies in B.C., is “about to issue a cease-and-desist order” against the firm. Colin Parcher, FICOM’s manager of investigations, refused to say whether it will issue such an order, citing FICOM policy not to comment until one is actually issued.
Sovereign Trust is the creation of Surrey resident John Ruiz Dempsey, who claims to have “Child of God Status.” “Any person, living or artificial, who wishes to claim any authority over me must first prove they exist above God; they are God; or they have a document upon the face of which can be found the verifiable signature of God,” he states on Sovereign Trust’s website.
Dempsey claims to have obtained a law degree from the Philippines, but has provided no proof that he has a degree. In 2004, B.C. Supreme Court prohibited him from holding himself out as a lawyer. In May 2007, the court found he had disregarded that ban and sentenced him to 30 days in jail. B.C. Court of Appeal also branded him a “vexatious litigant” and prohibited him from commencing any legal action without the court’s permission. On its website, Sovereign Trust says financial institutions ” have no right to seize your homes and to eject you and your loved ones into the streets for non-payment of debts created out of nothing by these corporations.”
It advertises a ” mortgage rescue plan” for distressed homeowners and promises to give first preference ” to all Sovereign Trust members who are being harassed and being threatened foreclosure of their homes.”
Sovereign Trust says it will pay the homeowner the equity portion and assume the mortgage debt. The homeowner can continue to live in the home. Where the trust company gets the money is not clear.
* The Vancouver Sun * David Baines
B.C. homes owners who are in financial difficulties should discuss their problems with their mortgage lenders, or seek the advice from their local licensed Mortgage Brokers.