A condominium corporation’s decision to spend $500,000 on a cryptocurrency product called “Pink Piggy Investment Group” has resulted in the suspension and potential revocation of the license of the condominium manager.
The Condominium Management Regulatory Authority of Ontario (CMROA) said that it had carried out an inspection of Bert Berger’s business, L&H Condominium Management after it “became aware of concerning allegations about a licensed condominium manager’s involvement in a condominium corporation’s reserve fund investments.”
In a Globe story published Sept. 20, Mr. Berger alleged there was “no harm, no foul” in the transfer of $500,000 from the reserve fund of a condo he managed – York Condominium Corp. No. 25 in Etobicoke, Ont. – into a crypto-backed investment certificate.
Ontario’s Condominium Act has strict rules aimed at keeping reserve funds invested in low-risk financial vehicles.
The CMROA said it was immediately suspending Mr. Berger for “recommending and/or arranging an investment that was not compliant with section 115 of the Act” which covers the types of allowable investments.
The CMRAO also alleges Mr. Berger contravened its governing legislation by failing to disclose a financial stake in Pink Piggy Investment Group: “It is further alleged that Mr. Berger provided false or deceptive information to the corporation about 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, 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 it is appealed to the provincial Licence Appeal Tribunal.
The suspension leaves Mr. Berger’s property management company without any licensed condominium managers working for it. According to the CMRAO, those corporations that have contracts with L&H have been notified of the situation.
Mr. Berger had disputed the allegations in an interview with The Globe in September but did not respond to requests for comment after his suspension.