Enforcement order

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 2, 35, 38, 39, and 43;

AND IN THE MATTER OF Jeshuren Anandarajah, Noah’s Ark Community Centre, and NACC Legal Services

MINUTES OF SETTLEMENT AND UNDERTAKING

I. INTRODUCTION

Jeshuren Anandarajah (“Anandarajah”) was previously licensed as a mortgage agent (licence #M15001775) under the Act. He was licensed from August 24, 2015, until his license expired on March 31, 2020.

As a mortgage agent, Anandarajah was licensed through various brokerages:
1. From August 24, 2015, to September 30, 2015, Anandarajah was licensed through AKAL Mortgages Inc.;
2. Pursuant to paragraph 17(3)(a) of the Act, Anandarajah was not licensed from October 1, 2015, to October 11, 2017;
3. From October 12, 2017, to March 31, 2018, Anandarajah was licensed through Centum Future Mortgage Group Inc.;
4. Pursuant to paragraph 17(3)(a) of the Act, Anandarajah was not licensed from April 1, 2018, to March 26, 2019;
5. From March 27, 2019, to September 3, 2019, Anandarajah was licensed through Valor Financial Corp. (“Valor”); and
6. Pursuant to paragraph 17(3)(a) of the Act, Anandarajah was not licensed from September 4, 2019 and the licence expired on March 31, 2020.

Noah’s Ark Community Centre (“NACC”) is unincorporated and unregistered. NACC is not and never has been licensed under the Act. Anandarajah was listed as the President of NACC on its website.

NACC Legal Services (“NACCLS”) is registered under the Business Names Act, R.S.O. 1990, c. B.17, as a sole proprietorship. Anandarajah is the sole proprietor of NACCLS. NACCLS is not and never has been licensed under the Act.

Romola Anandarajah (“Romola”) is Anandarajah’s mother. Romola is not and never has been licensed under the Act.

On July 8, 2021, the Director, Litigation and Enforcement (the “Director”), by delegated authority from the Chief Executive Officer (“CEO”) of the Financial Services Regulatory Authority of Ontario (“FSRA”), issued a Notice of Proposal in respect of Anandarajah, Romola, NACC, and NACCLS (the “NOP”).

Anandarajah, NACC, and NACCLS disputed the allegations and, on or about July 21, 2021, requested a hearing before the Financial Services Tribunal (the “Tribunal”) in respect of the NOP.

Anandarajah, NACC, and NACCLS and the Director, by delegated authority from the CEO, (collectively the “Parties”) wish to resolve this matter on consent and without a hearing before the Tribunal.

PART II – AGREED FACTS

“PB” is an Ontario resident. Romola, Anandarajah, NACC, and NACCLS dealt in mortgages with respect to PB.

PB met with Romola and Anandarajah in April 2019. Romola and Anandarajah told PB that they were mortgage brokers. Romola and Anandarajah also told PB that they operated NACCLS. Anandarajah told PB that he was also a real estate agent and the president of NACCLS.

Romola and Anandarajah told PB that if she provided them with funds, they would loan her funds to borrowers and secure her investment with mortgages.

PB provided Romola and Anandarajah with seven bank drafts made payable to NACCLS totaling $227,750 that they told her would be used to issue mortgages:

Date	Amount
June 3, 2019	$66,250
June 21, 2019	$40,000
June 26, 2019	$4,500
June 26, 2019	$6,000
June 26, 2019	$12,000
July 6, 2019	$36,000
July 6, 2019	$63,000

Anandarajah told PB that he would charge a broker fee for brokering these purported mortgages. At Anandarajah’s direction, PB paid him a commission for brokering certain mortgages in the amount of $5,500.

PB has been repaid some of her mortgage loan amounts, but she has not recovered the full amount.

PB had previously loaned funds via a second mortgage on a Brampton property (the “Brampton Property”). The borrower defaulted on the first mortgage and there was a risk that the Brampton Property would be sold on a power of sale in which case PB, as the second lender, would risk recovery of her full loaned amount.

In February 2020, Anandarajah contacted PB and told her that he was trying to refinance the Brampton Property. Anandarajah told PB that if she postponed her mortgage on the Brampton Property and reduced her payout amount by $25,000, then at the time of refinancing she would receive her full loaned amount less $25,000, for which amount she could continue to hold a mortgage and have security on the Brampton Property until repaid. PB did not agree to this.

The Brampton Property was later sold under power of sale, and PB received none of the proceeds.

PART III – NON-COMPLIANCE WITH THE ACT

By engaging in the conduct described above in Part II, Anandarajah admits and acknowledges that he breached the Act as follows:
1. Acting contrary to subsection 43(2) of the Act between March 27, 2019, and September 3, 2019;
2. Acting or omitting to act in circumstances where he ought to have known that such actions or omissions to act would facilitate dishonesty, fraud, crime, or illegal conduct by Romola, contrary to subsection 3.1 of O. Reg. 187/08;
3. Receiving fees of $5,500 in respect of his dealings in mortgages from PB, a person other than Valor, contrary to subsection 4(1) of O. Reg. 187/08.

By engaging in the conduct described above in Part II, NACC admits and acknowledges that it breached subsection 2(2) of the Act by dealing in mortgages with respect to PB without being licensed under the Act.

By engaging in the conduct described above in Part II, NACCLS admits and acknowledges that it breached subsection 2(2) of the Act by dealing in mortgages with respect to PB without being licensed under the Act.

PART IV – TERMS OF SETTLEMENT

Anandarajah, NACC, and NACCLS admit the facts contained in Part II of these Minutes.

Anandarajah, NACC, and NACCLS acknowledge and agree that they have been given the opportunity to seek independent legal advice and have done so (or have waived the right to do so) and are entering into these Minutes of Settlement and Undertaking (“Minutes”) voluntarily, understanding the consequences of doing so.

Anandarajah, NACC, and NACCLS acknowledge that these Minutes are an undertaking within the meaning of the Act, and that failure to comply may result in immediate regulatory action including, but not limited to, the issuance of a Notice of Proposal to revoke the licence, a Notice of Proposal to impose an administrative penalty, or a prosecution under the Provincial Offences Act.

(a) Issuance of Order

Anandarajah, NACC, and NACCLS acknowledges that, upon execution of these Minutes by both Parties, the order attached as Schedule “A” to these Minutes (the “Order”) will be issued, pursuant to which:
1. Three administrative penalties in the total amount of $30,000 shall be imposed on Anandarajah:
  1. $10,000 for contravening subsection 43(2) of the Act;
  2. $10,000 for contravening subsection 3.1 of O. Reg. 187/08 by acting or omitting to act in circumstances where Anandarajah ought to have known that such actions or omissions to act would facilitate dishonesty, fraud, crime, or illegal conduct; and
  3. $10,000 for contravening subsection 4(1) of O. Reg. 187/08 by receiving remuneration for dealing or trading in mortgages from a person other than the brokerage on whose behalf Anandarajah was authorized to deal or trade in mortgages;
2. A permanent order shall be issued against Anandarajah to cease dealing in mortgages without being licensed under the Act;
3. A permanent order shall be issued against NACC to cease dealing in mortgages without being licensed under the Act; and
4. A permanent order shall be issued against NACCLS to cease dealing in mortgages without being licensed under the Act.

(d) Process for Execution of Settlement

Anandarajah, NACC, and NACCLS acknowledges that these Minutes are not binding on the Director until signed by the Director.

These Minutes may be executed in counterparts, and may be executed and delivered by facsimile or e-mail, and all such counterparts and facsimiles or e- mails, as applicable, shall together constitute one and the same agreement.

Upon receiving an executed copy of these Minutes from FSRA, Anandarajah, NACC, and NACCLS will withdraw their Request for Hearing (Form 1) in respect of the NOP before the Tribunal by completing a Withdrawal/Discontinuance (Form 5) and filing it with the Registrar at the Tribunal within five business days.

Upon confirmation from the Tribunal that the Request for Hearing has been withdrawn and the hearing has been cancelled, the Parties agree that the Director will issue an Order in the form attached as Schedule “A” to these Minutes.

The Parties accept and understand that these Minutes and any rights within the Minutes shall enure to the Parties and to any successors or assigns of the Parties.

(e) Disclosure of Minutes and Order

The Parties will keep the terms of these Minutes and the Order confidential until the Order is issued, except that:
1. The Director shall be permitted to disclose the Minutes and the Order within FSRA; and
2. The Parties shall be permitted to inform the Financial Services Tribunal.

If either of the Parties do not sign these Minutes or the Director does not issue the Order:
1. These Minutes, the Order, and all related discussions and negotiations will be without prejudice to FSRA and Anandarajah, NACC, and NACCLS; and
2. FSRA and Anandarajah, NACC, and NACCLS will each be entitled to all available proceedings, remedies, and challenges, including proceeding to a hearing of the allegations contained in the NOP. Any proceedings, remedies and challenges will not be affected by these Minutes, the Order, or any related discussions or negotiations.

Upon issuance of the Order:
1. Anandarajah, NACC, and NACCLS agree that these Minutes and the Order form part of their administrative record for the purposes of any future licensing decision or as an aggravating factor in respect of a future administrative penalty or prosecution against them or any affiliated entities;
2. Anandarajah, NACC, and NACCLS acknowledge that these Minutes and the Order are public and will be published by FSRA on its public website (or that of its successor) along with a press release that summarizes these Minutes and the Order; and
3. The Parties agree not to make representations to any member of the public or media or in a public forum that are inconsistent with these Minutes or the Order.

(f) Further Proceedings

Whether or not the Order is issued, Anandarajah, NACC, and NACCLS will not use, in any proceeding, these Minutes or the negotiation or process of approval of these Minutes as the basis for any attack on FSRA’s jurisdiction, alleged bias, alleged unfairness, or any other remedies or challenges that may be available.

Upon issuance of the Order:
1. Anandarajah, NACC, and NACCLS waive all rights to a hearing before the Tribunal regarding the NOP;
2. Anandarajah, NACC, and NACCLS waive all rights to a judicial review or appeal of the Order;
3. The Director agrees that FSRA will not take any further proceedings against Anandarajah, NACC, and NACCLS arising solely from the facts contained in Part II of these Minutes, unless facts not disclosed by Anandarajah, NACC, and NACCLS come to the attention of FSRA that are materially different from those contained in Part II of these Minutes or Anandarajah, NACC, and NACCLS fail to comply with any term in the Order; and
4. Anandarajah, NACC, and NACCLS agree that should they fail to comply with any term in these Minutes or the Order, FSRA is entitled to bring any proceedings available to it.

DATED 02/22/2023 in the City of Toronto, Ontario

Original signed by

Jeshuren Anandarajah

Vimalathas Mayilvahanam
Witness

Original signed by

Noah’s Ark Community Centre
Per Jeshuren Anandarajah

Vimalathas Mayilvahanam
Witness

Original signed by

NACC Legal Services
Per Jeshuren Anandarajah

Vimalathas Mayilvahanam
Witness

DATED at Toronto, Ontario, February 23, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement
Financial Services Regulatory Authority of Ontario

By delegated authority from the Chief Executive Officer

APPENDIX A

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 2, 38, 39, and 43;

AND IN THE MATTER OF Jeshuren Anandarajah (“Anandarajah”).

COMPLIANCE ORDER and ORDER IMPOSING ADMINISTRATIVE PENALTIES

to make a permanent compliance order requiring Anandarajah to cease dealing in mortgages without being licensed under the Act, contrary to subsection 2(3) of the Act; and

to impose three administrative monetary penalties on Anandarajah for:
1. contravening subsection 43(2) of the Act by providing false or deceptive information when dealing in mortgages;
2. contravening subsection 3.1 of O. Reg. 187/08 by acting or omitting to act in circumstances where Anandarajah ought to have known that such actions or omissions to act would facilitate dishonesty, fraud, crime, or illegal conduct; and
3. contravening subsection 4(1) of O. Reg. 187/08 by receiving remuneration for dealing or trading in mortgages from a person other than the brokerage on whose behalf Anandarajah was authorized to deal or trade in mortgages.

A Request for Hearing (Form 1) dated July 21, 2021, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with sections 35(4) and 39(5) of the Act respecting the Notice of Proposal.

On [date], Anandarajah withdrew the Request for Hearing, and, on [date] the Tribunal closed its file in respect of this matter. This order is made pursuant to a settlement entered into by Anandarajah and the Director.

ORDER

Administrative penalties in the total amount of $30,000 are hereby imposed on Jeshuren Anandarajah, for the reasons set out in the Minutes of Settlement.

For reasons set out in the Minutes of Settlement, it is hereby ordered that Jeshuren Anandarajah permanently cease dealing in mortgages without being licensed under the Act.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Jeshuren Anandarajah with information as to where and how to pay the administrative penalties. Jeshuren Anandarajah must pay the administrative penalties no later than 30 days after the order is issued, or as otherwise agreed.

If Jeshuren Anandarajah fails to pay the administrative penalties in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario,

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 2 and 35;

AND IN THE MATTER OF Noah’s Ark Community Centre (“NACC”).

COMPLIANCE ORDER

NACC is unincorporated and unregistered. NACC is not and never has been licensed under the Act.

On July 8, 2021, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to make a permanent compliance order for NACC to cease dealing in mortgages without being licensed under the Act, contrary to subsection 2(3) of the Act.

A Request for Hearing (Form 1) dated July 21, 2021, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On [date], NACC withdrew the Request for Hearing, and, on [date] the Tribunal closed its file in respect of this matter. This order is made pursuant to a settlement entered into by NACC and the Director.

ORDER

It is hereby ordered that Noah’s Ark Community Centre permanently cease dealing in mortgages without being licensed under the Act, for the reasons set out in the Minutes of Settlement.

DATED at Toronto, Ontario,

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 2 and 35;

AND IN THE MATTER OF NACC Legal Services (“NACCLS”).

COMPLIANCE ORDER

NACCLS is registered under the Business Names Act, R.S.O. 1990, c. B.17, as a sole proprietorship. NACCLS is not and never has been licensed under the Act.

On July 8, 2021, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to make a permanent compliance order for NACCLS to cease dealing in mortgages without being licensed under the Act, contrary to subsection 2(3) of the Act.

On [date], NACC Legal Services withdrew the Request for Hearing, and, on [date] the Tribunal closed its file in respect of this matter. This order is made pursuant to a settlement entered into by NACCLS and the Director.

ORDER

It is hereby ordered that NACC Legal Services permanently cease dealing in mortgages without being licensed under the Act, for the reasons set out in the Minutes of Settlement.

DATED at Toronto, Ontario,

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous désirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.