Penalty Decision

A discipline committee of the Real Estate Council of British Columbia (the “Council”) has found that Jacob Giesbrecht Siemens committed professional misconduct (breach of his obligations as a managing broker) in that he:

1. suggested to the listing agent for a property (the "Property") that he provide a loan (the “Loan”) secured by a mortgage against the Property to the listing agent’s client so that the client could continue with construction on the Property, placing the listing agent in a conflict of interest;
2. failed to properly advise the listing agent that the Loan could place the listing agent in a potential conflict of interest, and failed to properly advise the listing agent to take reasonable and appropriate steps to avoid any conflict of interest, or to disclose the conflict of interest; and
3. failed to advise the listing agent to advise the client to seek independent legal advice about the Loan, the promissory note, and the second mortgage that was to be registered against the Property, and failed to ensure that the listing agent documented the terms of the Loan before agreeing to pay the construction invoices.

On June 30, 2020 Mr. Siemens filed an appeal with the Financial Services Tribunal (FST) regarding the penalty. Mr. Siemens' penalty is automatically stayed by the appeal until there is any contrary decision by the FST.

Decision History

RECBC Disciplinary Decision: October 2, 2019

Discipline Committee Decision Regarding Liability: October 2, 2019

FST Decision: April 15, 2021

Results

A discipline committee of the Council has ordered that Jacob Giesbrecht Siemens:

1. pay a discipline penalty of $5,000;
2. pay enforcement expenses of $26,000; and
3. successfully complete the Broker’s Remedial Education Course.