Menethil Properties Ltd., and its director, Yu “David” Song, are once again under fire. This time, the British Columbia Financial Services Authority (BCFSA) has ordered the Kelowna, B.C.-based rental property brokerage to halt operations following the suspension of its managing broker, Tao “Terry” Guo.
The latest news, announced on Feb. 13, revealed that Guo abandoned his duties as managing broker by relocating overseas and delegating his responsibilities to Song. The delegation of these responsibilities to Song—whose own managing broker licence was cancelled less than two years ago—was deemed a violation of RESA.
A history of controversy
In September 2023, BCFSA cancelled Song’s managing broker licence after finding him guilty of professional misconduct. The violations included failing to file financial statements, maintain proper financial records and respond to BCFSA’s requests for information. Not only did Song breach Real Estate Services Rules but serious concerns were also raised about the company’s ability to protect the interests of its clients.
At the time, Song admitted to the allegations. He was fined $25,000 and faced a bill of $14,537 for enforcement costs. His licence was also revoked.
Song was permitted to continue as a representative broker and remained the director of Menethil Properties with stringent conditions such as completing a broker’s licensing course before reapplying for a managing broker licence.
Current developments
Guo’s alleged failure to supervise the brokerage was discovered during an ongoing investigation into Menethil’s accounting and payment practices, BCFSA says. The suspension of Guo’s licence leaves Menethil Properties without a managing broker, rendering the brokerage unauthorized to operate.
“Evidence that Guo no longer had care and control of the brokerage created an urgent need for BCFSA to take action to protect the public,” said Jon Vandall, BCFSA’s senior vice president, Compliance and Enforcement, in a statement.
Impact on tenants and landlords
Menethil Properties manages approximately 100 rental properties in Kelowna. BCFSA says that tenancy agreements remain valid under the Residential Tenancy Act, urging tenants to continue paying their rent as agreed. Landlords and tenants can find more information through BCFSA’s consumer alerts.
The future of Menethil Properties hinges on appointing a new licensed managing broker to oversee operations, along with addressing the regulatory concerns raised by BCFSA.