IN THE MATTER OF the Insurance Act, R.S.O. 1990, c.I.8, as amended (the “Act”), in particular sections 392.5 and 407.1;
AND IN THE MATTER OF Donald Newton Mason
NOTICE OF PROPOSAL TO REVOKE LICENCE
TO: Donald Newton Mason
TAKE NOTICE THAT pursuant to sections 392.5 and 407.1 of the Act, and by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer” or “FSRA”), the Director, Litigation and Enforcement, (the “Director”) is proposing to revoke the insurance agent licence issued to Donald Newton Mason.
Details of these contraventions and reasons for this proposal are described below. This Notice of Proposal includes allegations that may be considered at a hearing.
SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.
YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTIONS 407.1(2) AND 407.1(3) OF THE ACT. A hearing by the Tribunal about this Notice of Proposal may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed or emailed to:
Address: Financial Services Tribunal
25 Sheppard Avenue W, Suite 100
Toronto, ON M2N 6S6
Attention : Registrar
Fax: 416-226-7750
Email: contact@fstontario.ca
For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca.
TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you, orders will be issued as described in this Notice of Proposal.
The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephoning the Registrar of the Tribunal at (416) 590-7294 or toll free at 1-800-668-0128 extension 7294.
At a hearing, your character, conduct and/or competence may be in issue. You may be furnished with further and/or other particulars, including further or other grounds, to support this proposal.
REASONS FOR PROPOSAL
I. INTRODUCTION
1. These are the reasons for the proposal by the Director to revoke the insurance agent licence issued to Donald Newton Mason (“Mason”).
2. Mason took advantage of his position of authority and trust at his church for his personal gain by misappropriating more than $700,000 from vulnerable parishioners. Mason has also failed to respond to multiple inquiries from FSRA. Given Mason’s misconduct, the Director reasonably believes that he is not suitable to be licensed.
II. BACKGROUND
A. FSRA Licensing History
3. Mason has been licensed as a life insurance and accident & sickness insurance agent (licence #12124639) under the Act since March 20, 2012. Mason’s licence expires on March 19, 2026, and is presently suspended.
B. Other Parties
4. “AM” is Mason’s spouse and a licensed Real Estate Agent.
5. Mason is the sole Director of 1000111224 Ontario Inc. (“1000111224”).
C. The First Notice of Proposal
6. In 2024, FSRA received a Life Agent Misconduct Report (“LAMR”) from Mason’s contracted insurance company. The LAMR made allegations that Mason had engaged in unsuitable conduct, including the misappropriation of funds from members of the public. FSRA also received a complaint from a member of the public.
7. Following receipt of the LAMR and the complaint, FSRA made repeated inquiries of Mason. However, Mason failed to respond to any of FSRA’s inquiries, and thus contravened subsection 442.3(1) of the Act.
8. On April 25, 2025, FSRA issued a Notice of Proposal to suspend Mason’s licence and impose an administrative penalty of $5,000 for failing to explicitly and completely respond to the inquiries of the Chief Executive Officer (the “First NOP”). FSRA also issued an interim order suspending Mason’s licence until the expiry of the period for requesting a hearing in respect of the First NOP.
9. Mason did not request a hearing in respect of the First NOP. Accordingly, Mason’s license was suspended effective April 25, 2025, and the administrative penalty was imposed.
10. Since the suspension, Mason has continued to fail to respond to the inquiries of the Chief Executive Officer. Furthermore, Mason has failed to pay the administrative penalty.
D. Misappropriation of Funds
11. In 2017, Mason became a “Lay Minister” of a Church in Pickering, Ontario. Mason subsequently misused his position as a Lay Minister to misappropriate funds from two vulnerable parishioners.
12. “GI” is an Ontario resident and a member of Mason’s church. She is a senior citizen with limited financial literacy and, at the relevant time, was in the early stages of dementia.
13. In late 2021, Mason and his wife, AM, assisted GI in selling her home. The property sold for approximately $1,250,000. GI purchased a condominium and obtained a mortgage with the assistance of Mason.
14. During the process of the sale of her home, Mason pressured GI to invest some of the funds from the proceeds into an “investment opportunity”. GI was advised by Mason that the investment would provide “monthly returns” which GI could use to pay her mortgage, condominium fees, and property taxes.
15. Relying on the representations of Mason, on February 11, 2022, GI signed an Investor Agreement with Mason’s company 1000111224 (the “GI Agreement”). The GI Agreement stated that GI’s investment of $307,000, “[would] be primarily used for real estate investment purposes” “or any other investment that is agreeable to both parties”. The GI Agreement guaranteed a return of 7% annually for the first year and a return of 4% to 7% in subsequent years.
16. Mason initially made monthly payments to GI in respect of the GI Agreement. However, Mason began to miss monthly payments in October of 2023 and permanently ceased making monthly payments in early 2024.
17. Mason has failed to respond to subsequent communication attempts by GI.
18. As a result of Mason failing to make payments, GI’s daughter has been forced to pay her mother’s mortgage and related expenses.
(ii) “YJ”
19. “YJ” is an Ontario resident and a member of Mason’s church. She is a senior citizen with limited financial literacy.
20. After YJ’s husband passed away in 2021, she decided to sell her home. She used AM as her realtor. The property sold in June 2022 for approximately $740,000.
21. Shortly after the sale of YJ’s property closed, Mason pressured YJ to invest with him. Mason told YJ that he could offer a return of double what she would receive if she invested her funds in Guaranteed Investment Certificates (“GICs”).
22. On July 15, 2022, YJ invested $400,000 with 1000111224 via two Investor Agreements (the “YJ Agreements”). The YJ Agreements stated that the “funds are to be used primarily for real estate investment purposes or any other investment that is agreeable to both parties,” and guaranteed a return of 7% per year.
23. Mason initially made monthly payments to YJ in respect of the YJ Agreements. However, Mason permanently ceased making monthly payments in December 2023.
24. Mason has failed to respond to subsequent communication attempts by YJ.
III. GROUNDS FOR REVOCATION
25. Section 392.5(1) of the Act states that the Chief Executive Officer may revoke or suspend an agent’s licence to act as an insurance agent, if the agent has failed to comply with the Act, the regulations or a condition of the licence.
26. Section 392.5(2) of the Act states that the Chief Executive Officer may revoke or suspend an agent’s licence if any prescribed grounds for revoking or suspending a licence, or for refusing to issue a licence, exist.
27. Section 392.5 of the Act, and section 8 of Ontario Regulation 347/04 prescribe the circumstances the Chief Executive Officer may have regard to when determining whether an applicant is not suitable to be licenced, namely if it appears that the licensee has:
a) Violated any provision of the licence in the licence’s operations as an agent;
b) Made a material misstatement or omission in the application for the licence;
c) Been guilty of a fraudulent act or practice; or
d) Demonstrated incompetence or untrustworthiness to transact the insurance agency business for which the licence has been granted.
28. The Director has reasonable grounds to believe that Mason is not suitable for licensing under the Act and that a sanction less than revocation would not reflect the severity of his conduct and would not adequately protect the public.
29. First, by failing to respond to multiple inquiries from FSRA promptly, explicitly, and completely, and within the period specified, Mason has demonstrated he will not follow rules and is ungovernable. Section 442.3(1) of the Act imposes a positive obligation on a licensee to respond to inquiries from the Chief Executive Officer promptly, explicitly, and completely.
30. Second, Mason is guilty of a fraudulent act or practice. He used his trusted position as a Lay Minister at his church to defraud two vulnerable parishioners of more than $700,000. After failing to repay the two parishioners, Mason stopped responding to them.
31. Third, Mason has demonstrated untrustworthiness to transact the insurance agency business for which his licence has been granted. He abused his position of trust in the church for personal gain over a two-year period and caused harm to two vulnerable parishioners. A clear message must be sent to Mason, the insurance sector, and consumers that such conduct will not be tolerated.
32. Such further and other reasons as may come to my attention.
DATED at Toronto, Ontario,
_______________________________
Elissa Sinha
Director, Litigation and Enforcement
By delegated authority from the Chief Executive Officer