Kelowna property manager claims financial hardship in appealing $8,000 fine

A former Kelowna property manager, fined $8,250 has lost an appeal where the regulator pointed out he owned four properties, three without mortgages.

According to a May 14 BC Financial Services Authority decision, former property manager Tao Guo, who goes by the name Terry, filed his appeal 13 months late, but argued he should be given an extension.

The decision said Guo had his licence suspended under “urgent circumstances” in February 2025.

Two months later, the business, Menethil Properties, had its accounts frozen and its managing broker David Song was ordered to cease providing real estate services. Song was fined $25,000 and ordered to pay $15,000 costs.

An earlier decision said that in late 2024, clients had complained they were not receiving money the company held in trust.

The BC Financial Services Authority found that Guo had failed to provide documents to show that the company’s rental money and security deposits were compliant and fined him $1,000, plus a penalty of $250 per day, which accumulated to $8,250.

He had 30-days to appeal the fine and present a defence.

However, the regulator said his appeal came in 401 days late.

Guo argued he’d been overseas because of a family member’s illness.

However, the regulator ruled that it only covered several months, and there were nine “clear months” of “unexplained” delay.

“It appears to me that Mr. Guo essentially paid no mind to challenging the (penalty) and left its payment to Mr. Song without following up for more than a year. Several months of that year may have been spent dealing with significant family and personal health issues, but the bulk of that year were spent doing nothing and not following up,” the regulator said.

Guo also argued that Song had assured him he would deal with the matter.

That didn’t sit well with the regulator.

“He also ought to have been aware of the clear issues with regulatory compliance Mr. Song had in the fall of 2024 given the escalating steps BC Financial Services Authority was taking, which included the two non-compliance warning letters,” the regulator said. “In short, Mr. Guo ought to have known that Mr. Song was not sufficiently reliable to address the (fine).”

The former property manager also submitted he was withdrawing money from his RRSPs to meet financial obligations, although he provided no evidence. He also said his financial hardship has been made worse by a family member’s illness.

However, the BC Financial Services Authority pointed out that he owned four properties, and three were mortgage-free.

“Although his properties may not be easily liquidated, they can be borrowed against,” the regulator said.

Ultimately, the regulator dismissed the appeal, leaving the $8,250 fine due and payable.