IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 14 and 21;

AND IN THE MATTER OF Dewan Ahmed

NOTICE OF PROPOSAL TO REFUSE TO ISSUE LICENCE

TAKE NOTICE THAT pursuant to sections 14 and 21 of the Act, and 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”) is proposing to refuse to issue a Mortgage Agent, Level 1, licence to Dewan Ahmed.

Details of these contraventions and reasons for this proposal are described below. This Notice of Proposal includes allegations that may be considered at a hearing.

SI VOUS DÉSIREZ RECEVOIR CET AVIS EN FRANÇAIS, veuillez nous envoyer votre demande par courriel immédiatement à: contactcentre@fsrao.ca.

YOU ARE ENTITLED TO A HEARING BY THE FINANCIAL SERVICES TRIBUNAL (THE “TRIBUNAL”) PURSUANT TO SECTIONS 21(2) AND 21(3) OF THE ACT. A hearing by the Tribunal about this Notice of Proposal may be requested by completing the enclosed Request for Hearing Form (Form 1) and delivering it to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you. The Request for Hearing Form (Form 1) must be mailed, delivered, faxed or emailed to:

Address:       
Financial Services Tribunal
25 Sheppard Avenue West, 7^th Floor
Toronto, Ontario
M2N 6S6

Attention: Registrar

Fax: 416-226-7750

Email: contact@fstontario.ca

TAKE NOTICE THAT if you do not deliver a written request for a hearing to the Tribunal within fifteen (15) days after this Notice of Proposal is received by you, orders will be issued as described in this Notice of Proposal.

For additional copies of the Request for Hearing Form (Form 1), visit the Tribunal’s website at www.fstontario.ca

The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure for Proceedings before the Financial Services Tribunal (“Rules”) made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended. The Rules are available at the website of the Tribunal: www.fstontario.ca. Alternatively, copy can be obtained by telephoning the Registrar of the Tribunal at 416-590-7294, or toll free at 1-800-668-0128 extension 7294.

At a hearing, your character, conduct and/or competence may be in issue. You may be furnished with further and or other particulars, including further or other grounds, to support this proposal.

REASONS FOR PROPOSAL

I. INTRODUCTION

1. These are reasons for the proposal by the Director to refuse to issue a Mortgage Agent Licence, Level 1, to Dewan Ahmed (“Ahmed”)

II. BACKGROUND

FSRA Licensing History

2. On October 17, 2022, Ahmed applied for a Mortgage Agent licence under the Act.

RECO Discipline Proceedings

3. Ahmed has been registered as a Real Estate Salesperson under the Real Estate and Business Brokers Act, 2002 (“REBBA”) since April 8, 2014, and continues to be registered to date.
4. The Real Estate Council of Ontario (RECO) administers and enforces REBBA 2002 and its Code of Ethics (the “Code”).
5. Ahmed was disciplined by RECO in 2018 by way of Agreed Statement of Fact and Penalty. In a decision released on July 5, 2018 (the “RECO Decision”), Ahmed admitted to the following:
   1. Ahmed made an appointment with “Brokerage B” to show a property to his clients on a specific date and was provided the code to the Seller’s Property lock-box for that purpose.
   2. Without the consent or knowledge of “Brokerage B”, or the Sellers, Ahmed returned to the Property the following day with his clients to view the property again. Ahmed used the same lock-box code he had been given previously.
   3. The Sellers returned home to discover Ahmed and his clients inside their property without their consent or knowledge.
6. In the RECO Decision, Ahmed agreed that using a lock-box code to obtain access to the Property without the knowledge and consent of the Sellers, including through either “Brokerage B” or “Representative B”, constituted trespassing, contrary to sections 3, 5, 38 and 39 of the REBBA 2002 Code of Ethics.
7. Ahmed agreed to and was ordered to pay a penalty of $7,000. In addition, Ahmed was ordered to enroll in the RECO Residential Update course and provide proof of successful completion. Ahmed complied with the terms of the Discipline Order.

FSRA Application

8. On October 17, 2022, Ahmed applied for a Mortgage Agent licence. Applicants applying for a new licence under the Act are asked a series of questions intended to assess suitability. Notwithstanding the RECO decision, Ahmed answered “no” to the following questions on the application:
   1. “Have you ever been refused registration or a licence under any legislation which required registration or licensing to deal with the public in any capacity (e.g. insurance agent, RIBO Broker, securities dealer, motor vehicle dealer, etc.) in any province, territory, state or country; or have you held such a licence and been the subject of a disciplinary proceeding that resulted in a penalty being imposed (e.g. suspension, termination, reprimand, surrender, etc.) or are you the holder of such a licence and currently the subject of an investigation or upcoming disciplinary proceeding that may result in a penalty being imposed?” [Emphasis added]
   2. “Have you ever been successfully sued or has a complaint ever been made against you to a regulatory body in any province, territory, state or country that was or is based in whole or in part on fraud, theft, deceit, misrepresentation, forgery, or similar conduct; or based in whole or in part, on professional negligence or misconduct (including claims paid by your errors or omissions insurance carrier or bonding company.)
9. By answering “no” to the questions on the application, Ahmed made false statements to the CEO.

Outstanding Criminal Charges

10. On June 12, 2021, the Applicant was charged with thirteen (13) criminal offences relating to a matter of domestic violence. Those charges were pending before the Ontario Court of Justice when Ahmed applied to be licensed. By the date of the application on October 17, 2022, there had been fifteen (15) court appearances on the charges.

11. Notwithstanding the criminal charges and the multiple court appearances, on the application for a Mortgage Agent Licence, Ahmed answered “no” to the following question:

    Have you ever pleaded guilty or been found guilty of an offence under any law in any province, territory, state or country, or are you currently the subject of any charges? [Emphasis added]

12. By answering “no” to the question on the application, Ahmed made a false statement to the CEO.
13. On September 11, 2023, trial dates were set for October 3-5, 2023. On October 3, 2023, all thirteen (13) counts were withdrawn by the Crown.

Breach of Family Court Orders

14. In 2019, Ahmed was found to be in breach of four consent court orders with respect to a family law matter. Some of the breaches of the court orders relate to Ahmed operating in his capacity as a licensed real estate agent.

III. GROUNDS FOR REFUSAL TO ISSUE LICENCE

15. Section 14(1) of the Act states that the Chief Executive Officer shall issue a licence to an applicant who satisfies the prescribed requirements for the licence unless the Chief Executive Officer believes, on reasonable grounds, that the applicant is not suitable to be licensed having regard to such circumstances as may be prescribed and such other matters as the Chief Executive Officer considers appropriate.
16. In determining whether an individual is not suitable to be licensed as a mortgage broker or agent, the CEO is required to have regard to the prescribed circumstances in s. 10 of Ontario Regulation 409/07 (the “Regulation”).
    1. Whether the individual’s past conduct affords reasonable grounds for belief that he or she will not deal or trade in mortgages in accordance with the law and with integrity and honesty.
    2. Whether the individual is carrying on activities that contravene or will contravene the Act or the regulations if he or she is licensed.
    3. Whether the individual has made a false statement or has provided false information to the Chief Executive Officer with respect to the application for the licence.
17. Ahmed is not suitable to be licensed as a mortgage agent pursuant to the prescribed circumstances in the Regulation. Ahmed made false statements and provided false information to the CEO by failing to disclose past disciplinary proceedings and pending criminal charges. Without accurate disclosure from applicants, FSRA cannot effectively perform the gate-keeping and supervisory functions inherent in the licensing processes, which are critical to the public interest.
18. Further, the false statements and Ahmed’s past conduct in failing to comply with family court consent orders have a direct nexus to his ability to conduct business in accordance with the standards expected in a regulated industry. Licensed mortgage agents occupy a position of trust with respect to their clients in providing advice and often handling their client’s funds. They are expected to deal with the public with honesty, integrity and in the best interests of clients. Ahmed’s conduct calls into question his ability or willingness to comply with the requirements of the Act and gives the Director reasonable grounds for belief that Ahmed will not deal or trade in mortgages in accordance with the law and with integrity and honesty.
19. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, October 27, 2023.

Original signed by

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.