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

AND IN THE MATTER OF Arman Raymond Iskin and Streamline Mortgages Ltd.

MINUTES OF SETTLEMENT AND UNDERTAKING

PART I – INTRODUCTION

1. Arman Raymond Iskin (“Iskin”) is licensed as a mortgage broker under the Act (licence # M12001646). Iskin’s licence was renewed on April 1, 2023, with an expected expiry date of March 31, 2024.
2. Iskin is the director, president, secretary and principal broker of Streamline Mortgages Ltd. (‘Streamline Mortgages”), a mortgage brokerage licensed under the Act (licence #12750).
3. On March 9, 2023, the Director, Litigation and Enforcement (“’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 Iskin and Streamline Mortgages (the “NOP”).
4. Iskin and Streamline Mortgages disputed the allegations and, on or about March 24, 2023, requested a hearing before the Financial Services Tribunal (the “Tribunal”) in respect of the NOP.
5. Iskin, Streamline Mortgages, 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

6. In January of 2021 a Streamline Mortgages employee (“AD”) received an email from an unlicensed person (“BS”) who was acting as an assistant for a licensed principal broker (“CS”) regarding a borrower (“JC”) purportedly seeking a mortgage on his Toronto residence.
7. Iskin received the email from AD and forwarded the message to a real estate lawyer (“RM”) asking if he knew any potential lenders for the Toronto property. RM provided the name of a lender interested in advancing the funds. Iskin provided RM with documentation relating to the transaction received from AD, including an appraisal, Mortgage Application, Credit Report Property Tax bill and T4A . RM advised Iskin that he had a lender for the mortgage and RM had sent the file directly to the lender.
8. The lender agreed to the loan, and Iskin provided AD with a secondary application to be to sent to and filled out by the client . BS then provided that application to CS. CS sent the signed application to BS, that was then sent to AD and provided to Iskin.
9. Iskin contacted RM’s office to seek a signed Form 1 back however, RM’s office did not receive a signed Form 1 from its client.
10. On March 21, 2021, a private mortgage in the amount of $467,500 was registered against JC’s Toronto property. On closing, Streamline Mortgages received $9,350 in fees.
11. The mortgage was subsequently determined to be fraudulent by the Ontario Land Registry Office and put in place without the knowledge or consent of JC, using a falsified passport and modified tax bill.
12. The mortgage was subsequently removed from the Toronto property and the lender was reimbursed the $467,500 they advanced, through Title Insurance.

PART III – NON-COMPLIANCE WITH THE ACT

13. By engaging in the conduct described above in Part II, Iskin admits and acknowledges that he breached the Act by acting contrary to section 3 of O. Reg. 187/08 by omitting to take steps that might reasonably be expected to result in Streamline Mortgages contravening or failing to comply with a requirement established under the Act.
14. By engaging in the conduct described above in Part II, Streamline Mortgages admits and acknowledges that it breached the Act by acting contrary to subsection 11(2) of O. Reg. 188/08 by failing to take reasonable steps to verify the identity of the borrower

PART IV – TERMS OF SETTLEMENT

15. Iskin and Streamline Mortgages admit the facts contained in Part II of these Minutes.
16. Iskin and Streamline Mortgages 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.
17. Iskin and Streamline Mortgages 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 Orders

18. Iskin and Streamline Mortgages acknowledge that, upon execution of these Minutes by both Parties, the orders attached as Schedule “A” to these Minutes (the “Orders”) will be issued, pursuant to which:
    1. Iskin will pay an Administrative Penalty of $5,000;
    2. A Compliance Order will be issued with respect to Streamline Mortgages; and
    3. Streamline will pay an Administrative Penalty of $7,500.

(b) Process for Execution of Settlement

19. Iskin and Streamline Mortgages acknowledge that these Minutes are not binding on the Director until signed by the Director.
20. 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.
21. Upon receiving an executed copy of these Minutes from FSRA, Iskin and Streamline Mortgages 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 (5) business days.
22. 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 the Orders in the form attached as Schedule “A” to these Minutes.
23. 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.

(c) Disclosure of Minutes and Orders

24. The Parties will keep the terms of these Minutes and the Orders confidential until the Orders are issued, except that:
    1. The Director shall be permitted to disclose the Minutes and the Orders within FSRA; and
    2. The Parties shall be permitted to inform the Financial Services Tribunal.
25. If either of the Parties do not sign these Minutes or the Director does not issue the Orders:
    1. These Minutes, the Orders, and all related discussions and negotiations will be without prejudice to FSRA and Streamline Mortgages; and
    2. The Parties 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 Orders, or any related discussions or negotiations.
26. Upon issuance of the Orders:
    1. Iskin and Streamline Mortgages agree that these Minutes and the Orders 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. Iskin and Streamline Mortgages acknowledge that these Minutes and the Orders 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 Orders; 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 Orders.

(d) Further Proceedings

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

DATED 10/20/23 at Toronto, Ontario

Original signed by

Arman Raymond Iskin

DATED 10/20/23 at Toronto, Ontario

Original signed by

Aishan Altayeva
Name of Witness

DATED 10/20/23 at Toronto, Ontario

Original signed by

Streamline Mortgages Ltd.
Per Arman Raymond Iskin

DATED 10/20/23 at Toronto, Ontario

Original signed by

Aishan Altayeva
Name of Witness

DATED at Toronto, Ontario October 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 35 and 39;

AND IN THE MATTER OF Arman Raymond Iskin and Streamline Mortgages Ltd.

COMPLIANCE ORDER AND
ORDER IMPOSING ADMINISTRATIVE PENALTIES

Arman Raymond Iskin (“Iskin”) is licensed as a Mortgage Agent (licence # M12001646) under the Act. Streamline Mortgages Ltd. (“Streamline Mortgage”) is licensed as a Mortgage Brokerage (licence # 12750) under the Act.

On March 9, 2023, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), Director, Litigation and Enforcement (the “Director”)] issued a Notice of Proposal to:

1. Impose an administrative penalty in the amount of $15,000 on Iskin for omitting to take steps that might reasonably be expected with a requirement established under the Act contrary to section 3 of Ontario Regulation 187/08; and
2. Impose a compliance order and impose an administrative penalty in the amount of $10,000 on Streamline Mortgages for failing to take reasonable steps to verify the identity of a borrower contrary to subsection 11(2) of Ontario Regulation 188/08 and for failing to disclose material risks of a mortgage to a lender contrary to subsection 25(1) of Ontario Regulation 188/08.

A Request for Hearing (Form 1) dated March 23, 2023, 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], Iskin and Streamline Mortgages withdrew the Request for Hearing, and, on [date], the Tribunal closed its file in respect of this matter. Therefore, pursuant to section 39(7) of the Act, the Director makes the following order.

ORDER

An administrative penalty in the amount of $5,000 is hereby imposed on Arman Raymond Iskin, for the reasons set out in the Notice of Proposal.

TAKE NOTICE THAT if Iskin fails to pay the administrative penalty 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

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.

ORDER

An administrative penalty in the amount of $7,500 is hereby imposed on Streamline Mortgages Ltd., for the reasons set out in the Notice of Proposal.

TAKE NOTICE THAT if Streamline Mortgages fails to pay the administrative penalty 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

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.

ORDER

It is hereby ordered that Streamline Mortgages Ltd. will:

1. Within 60 days, review and update its policies, procedures and practices regarding identity verification, disclosure of material risks and all other obligations to lenders and borrowers as set out in Ontario Regulation 188/08;
2. Within 120 days, train and sponsored brokers and agents on updated policies, procedures and practices; and
3. Provide a written report to the Director with respect to the completion of items (i) and (ii),

for the reasons set out in the Notice of Proposal.

DATED at Toronto, Ontario

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous desirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immediatement a : contactcentre@fsrao.ca.