Disclaimer
An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.
Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 18,19 and 21;

AND IN THE MATTER OF First Swiss Mortgage Corp. and Reza Nezami-Nia.


INTERIM ORDER SUSPENDING LICENCES

First Swiss Mortgage Corp.
5775 Yonge Street, Suite 525
Toronto, ON M2M4J1

Reza Nezami-Nia
Principal Broker

AND TO:  
Reza Nezami-Nia

Subsection 19(1) of the Act provides that the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”) may, by order, revoke a licence in certain specified circumstances.

Section 21 of the Act provides that if the Chief Executive Officer proposes to revoke a licence without the licensee’s consent, the Chief Executive Officer shall give written notice of the proposal to the licensee, including the reasons for the proposal.

Subsection 19(3) of the Act provides that, if in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.

IT IS ORDERED THAT pursuant to section 19(3) of the Act, the mortgage brokerage licence issued to First Swiss Mortgage Corp. (licence number 10550), the mortgage administrator licence issued to First Swiss Mortgage Corp. (licence number 11956), and the mortgage broker licence issued to Reza Nezami-Nia (licence number M08003821) are suspended for the reasons outlined below. During the suspension, First Swiss Mortgage Corp. and Reza Nezami-Nia are not authorized to deal in, trade in, or administer mortgages in Ontario.

TAKE NOTICE THAT this Interim Order takes effect immediately and will remain in effect until the expiry of the period for requesting a hearing in respect of a Notice of Proposal to Revoke Licence (15 days after the Notice is given, or deemed to have been delivered). AND TAKE NOTICE THAT pursuant to subsections 48(4) and 49(1) and (2) of the Act, every person who fails to comply with an order made under the Act is guilty of an offence and every individual convicted of an offence under the Act is liable to a fine of not more than $500,000 or imprisonment for a term of not more than a year or both a fine and imprisonment. Every corporation convicted of an offence under the Act is liable to a fine of not more than $1,000,000.

Pursuant to subsection 48(5) of the Act, if a corporation commits an offence under the Act, every director or officer of the corporation who directed, authorized, assented to, acquiesced in or participated in the commission of the offence, or who failed to take reasonable care to prevent the corporation from committing the offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted.

Subsection 48(6) provides that every partner of a partnership and every individual who is a member of the directing body of an entity, other than a person or partnership, who directed, authorized, assented to, acquiesced in or participated in the commission of an act or omission by the partnership or entity which, if committed by a person, would be an offence under the Act, is guilty of an offence.

REASONS FOR ORDER

  1. First Swiss Mortgage Corp. (“First Swiss”) is licensed as a mortgage brokerage (licence # 10550) under the Act. First Swiss is also licensed as a mortgage administrator (licence # 11956) under the Act.

  2. Reza Nezami-Nia (“Nezami-Nia”) is licensed as a mortgage broker (licence # M08003821) under the Act and is the principal broker of First Swiss. Nezami-Nia is also an officer and the sole director of First Swiss.

  3. The specific facts supporting this order are set out in the Notice of Proposal to Revoke Licences.

  4. Due to the bankruptcy and financial position of First Swiss, contraventions of requirements under the Act, and provision of false or deceptive information to the Financial Services Regulatory Authority of Ontario (“FSRA”) and lenders, there are reasonable grounds to believe that First Swiss and Nezami-Nia are no longer suitable to be licensed under the Act.

  5. Subsection 19(3) of the Act provides that if, in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.

  6. The Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer, is of the opinion that the interests of the public may be adversely affected by any delay in making an order to revoke the licences held by First Swiss and Nezami-Nia. Therefore, the issuance of an interim suspension is necessary.

  7. The serious misconduct by First Swiss and Nezami-Nia poses an imminent risk to their clients and the public more generally. Given the nature of the fraudulent conduct there are no lesser alternative measures which will adequately protect the public.

  8. Given the serious nature of the conduct in this case and the financial position of First Swiss, there is a significant risk of public harm if First Swiss and Nezami-Nia continue to offer mortgage services. Accordingly, the criteria for issuance of an interim suspension are satisfied.

DATED at Toronto, Ontario, March 22, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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