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

AND IN THE MATTER OF Hi-Rise Capital Ltd. (“Hi-Rise”).Dimitrios Neilas.

ORDER IMPOSING ADMINISTRATIVE PENALTIES

Hi-Rise Capital Ltd. (“Hi-Rise”) is licensed as a mortgage brokerage (licence # 10897) and as a mortgage administrator (licence # 11893) under the Act.

Dimitrios “Jim” Neilas (“Jim Neilas”) was licensed as mortgage broker under the Act (licence #M08003817) and was the principal broker of Hi-Rise until December 11, 2017.

On April 1, 2019, the Superintendent of Financial Services issued a Notice of Proposal in respect of Hi-Rise and Jim Neilas (the “Notice of Proposal”) proposing among other things to impose administrative penalties on Jim Neilas for contraventions in his role as a principal broker and as a broker with Hi-Rise Capital Limited. 

As a principal broker, Jim Neilas failed to ensure compliance with the Act and Regulations, contrary to section 2(1) of Ontario Reg. 410/07 and failed to ensure policies and procedures were compliant with the Act and Regulations, contrary to section 3(1) of Ontario Reg. 410/07.

As a broker, Jim Neilas failed to ensure: that the mortgages investments were suitable, contrary to section 24 of Ontario Reg. 188/08; disclosure of the “as is” value of the properties, contrary to sections 31(1) and 33 of Ont. Reg. 188/08 and section 3 of Ontario Reg. 187/08: adequate fee disclosure, contrary to sections 31(1) 1, 10 and 33 of Ontario Reg. 188/08 and section 3 of Ontario Reg. 187/08; adequate risk disclosure, contrary to section; and adequate conflict of interest disclosure, contrary to sections 26, 27, and 33 of Ontario Reg. 188/08 and section 3 of Ontario Reg. 187/08.

Effective June 8, 2019, pursuant to the Financial Services Regulatory Authority of Ontario Act, 2016, S.O. 2016, c. 37, Sched. 8, the Financial Services Regulatory Authority of Ontario became the regulator under the Act and the powers and duties previously vested in the Superintendent of Financial Services under the Act were vested in the Chief Executive Officer of Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”).

On April 17, 2023, Jim Neilas withdrew his Request for Hearing, and, on May 2, 2023, the Tribunal closed its file in respect of this matter.

This order is made pursuant to a settlement entered into by Jim Neilas and the Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer.

ORDER

Administrative penalties in the total amount of $38,888 are hereby imposed on Dimitrios Neilas, for the reasons set out in the Minutes of Settlement and Undertaking dated May 16, 2023.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Dimitrios Neilas with information as to where and how to pay the administrative penalties.

If Dimitrios Neilas fails to pay the administrative penalty in accordance with the terms of this Order and any further agreement or undertaking, 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 an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario, May 18, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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