Kelowna, B.C., rental brokerage's accounts frozen, ordered to cease operations

Akshay Kulkarni · CBC News

· Posted: Apr 29, 2025 9:58 AM EDT | Last Updated: 1 infinitesimal ago

The B.C. Financial Services Authority has ordered a Kelowna, B.C., rental brokerage steadfast to terminate operations and has frozen its accounts successful an "urgent order."

Menethil Properties, which manages implicit 100 rental properties successful the confederate Interior city, had been moving since January 2020.

But connected Friday, the BCFSA ordered a frost connected the firm's accounts, aft an earlier uncovering this February ordered it to cease providing existent property services due to the fact that its managing broker's licence had been suspended.

That suspension came aft Menethil's managing broker, Tao (Terry) Guo, moved overseas and didn't decently surrender his licence, instead delegating his responsibilities to 1 of the firm's spot managers, Yu (David) Song, the authorization said. 

Song was the erstwhile managing broker of the firm, but helium himself was suspended from that role in September 2023 and fined $25,000 for failing to record fiscal statements and not responding to the authority's requests for accusation successful time.

The BCFSA's probe into the steadfast began successful September 2024, erstwhile the authorization said it received complaints that spot absorption clients were not receiving funds Menethil was holding successful spot accounts.

It was revealed that the steadfast was operating done Song, and the BCFSA said Menethil and Song's continued entree to the firm's spot accounts would beryllium an "ongoing hazard to the public."

'Urgent request to support the public'

When the institution was investigated aft the nationalist complaints, managing broker Guo told the BCFSA in September 2024 that helium delegated responsibilities — including the spot relationship — to Song.

Shortly thereafter, Guo told the BCFSA that helium would unrecorded overseas for 2 years.

While helium had sought accusation connected however to transportation his broker's licence, helium yet stopped responding to the BCFSA's requests for much information, the authorization said. 

Then Guo's licence was suspended and Menethil was efficaciously inoperative, according to BCFSA documents.

"Given that Mr. Guo has failed [to] surrender his licence, and has not provided immoderate timeline successful which helium volition bash so, I see that determination is an urgent request to support the nationalist by suspending his licence astatine this time," reads a decision from BCFSA proceeding serviceman Andrew Pendray.

After Guo's licence was suspended, Song was ordered to upwind up Menethil, arsenic determination was nary licensed managing broker.

"Despite those facts, the grounds and accusation earlier maine indicates that Menethil has continued to cod rent connected behalf of proprietor clients during a clip erstwhile some Menethil and Mr. Song's licenses were inoperative, to astatine slightest March 28, 2025," reads a decision from Pendray issued past Friday.

BCFSA documents showed Song had besides texted a tenant regarding a showing of their home, arsenic good arsenic asked different tenant to wage rent to a antithetic email code than she was utilized to, successful the months aft helium was ordered to adjacent the brokerage.

Now, Menethil's accounts person each been frozen and the steadfast has been ordered to manus implicit its books to the BCFSA.

Menethil's website has been taken offline. CBC News has contacted Song for remark but has yet to perceive back.

Landlords who had properties managed by Menethil person been asked to found alternate arrangements, oregon negociate rents themselves, and person been told they cannot evict tenants who had paid wealth to Menethil arsenic portion of their tenancy agreements.

"While determination whitethorn beryllium immoderate impermanent interaction to members of the nationalist who are incapable to entree funds that Menethil is presently holding successful trust, I see that the broader nationalist involvement requires that the accounts beryllium frozen successful bid to guarantee that those funds are decently maintained," the BCFSA said.

Tenants and landlords who person much questions tin sojourn the BCFSA website for much information.