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 Ian Vilafana and Valor Financial Corp.

INTERIM ORDER SUSPENDING LICENCE

TO: Ian Vilafana

AND TO:  
Valor Financial Corp.
184 King Street West Oshawa, Ontario L1J 2J2

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 broker licence issued to Ian Vilafana (licence number M15000549) is suspended for the reasons outlined below. During the suspension, Vilafana is not authorized to deal or trade in mortgages in Ontario.

IT IS FURTHER ORDERED THAT pursuant to section 19(3) of the Act, the mortgage brokerage licence issued to Valor Financial Corp. (licence number 13114) is suspended for the reasons outlined below. During the suspension, Valor is not authorized to deal or trade in 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 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. Ian Vilafana (“Vilafana”) is licensed as a mortgage broker (licence # M15000549) under the Act. Vilafana was first licensed as a mortgage broker under the Act on July 18, 2017 and has been licensed for most of the period since that date.


2. Vilafana is the owner, sole director, and principal broker of Valor Financial Corp. (“Valor”), a mortgage brokerage licensed under the Act (licence # 13114), which has been operating under the licence since January 2019.


3. On March 20, 2023, the Director, Litigation and Enforcement (the “Director”) by delegated authority from the Chief Executive Officer issued a Notice of Proposal proposing to revoke the mortgage broker licence issued to Vilafana and the mortgage brokerage licence issued to Valor pursuant to section 19(1) of the Act (the “Notice of Proposal”).


4. As per the Notice of Proposal, the Director determined, on reasonable grounds, that Vilafana was not suitable to be licenced as a mortgage broker under the Act.
   
   
   1. The Director is satisfied that Vilafana, as a mortgage broker, intentionally and repeatedly contravened section 43(2) of the Act by giving false and deceptive information while dealing in mortgages in Ontario.
   
   
   2. The Director has determined that, by repeatedly contravening section 43(2) of the Act, Vilafana exhibited patently dishonest conduct and accordingly there are reasonable grounds for belief that he will not deal or trade in mortgages in accordance with the law and with integrity and honesty.
   
   


5. The Director further determined, on reasonable grounds, that Valor was not suitable to be licenced as a mortgage brokerage under the Act.
   
   
   1. The past conduct of Vilafana, who is the sole director of Valor, affords reasonable grounds for belief that the business of Valor will not be carried on in accordance with the law and with integrity and honesty.
   
   
   2. The Director has no reason to believe Valor supervised Vilafana’s conduct as a mortgage broker.
   
   


6. The specific facts pertaining to the above and detailed reasons for the Director’s proposal are set out in the Notice of 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.



Interim Suspension of Vilafana’s Licence

7. The Director, 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 Vilafana’s licence and therefore, the issuance of an interim suspension is necessary.


8. As described in detail in the Notice of Proposal, between October 2020 and January 2022, Vilafana intentionally and repeatedly supplied false and deceptive information and documents to his clients and other industry participants while dealing in mortgages in Ontario.


9. Vilafana has repeatedly given false and/or deceptive information and/or documents while engaging in the activities for which he is licensed under the Act and poses an imminent risk to his clients and the public. Given the nature of Vilafana’s past conduct and its relative recency there are no lesser alternative measures which will adequately protect the public.


10. Finally, as Vilafana is himself the principal broker of Valor, the only licensed mortgage broker at Valor, and its directing mind, it is unlikely that he would be effectively supervised by Valor. As of the date of this order, Valor has not raised any concerns or made any complaints to the Financial Services Regulatory Authority of Ontario with respect to Vilafana’s conduct as a mortgage broker.


11. Given the serious nature of the conduct which resulted in the Director’s decision to issue the Notice of Proposal proposing to revoke Vilafana’s mortgage broker licence, there is a significant risk of public harm if Vilafana continues to offer mortgage services. Accordingly, the criteria for issuance of an interim suspension order are satisfied.



Interim Suspension of Valor’s Licence

12. The Director, 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 Valor’s licence and therefore, the issuance of an interim suspension is necessary.


13. As noted above Vilafana is the sole owner, director, and principal broker at Valor. Moreover, Vilafana is the only broker authorized to deal or trade in mortgages on behalf of Valor.


14. On account of the reasons described in the Notice of Proposal, particularly the reasons addressing Vilafana’s misconduct as a mortgage broker dealing in mortgages on behalf of Valor, the Director reasonably believes that the business of Valor has not been, and will not be, carried on in accordance with the law and with integrity and honesty.


15. The Director has no reason the believe that Valor has actively supervised Vilafana’s conduct as a mortgage broker. Furthermore, Valor took no steps to address Vilafana’s conduct as required under section 14.2 of Ontario Regulation 188/08 or to report Vilafana’s misconduct as required under section 43(3) of Ontario Regulation 188/08.


16. Moreover, as Vilafana is the only broker authorized to deal or trade in mortgages on behalf of Valor, the suspension of his mortgage broker licence as ordered under this Interim Order would lead to the automatic suspension of Valor’s mortgage brokerage licence in accordance with section 17(1) of the Act.


17. Given the serious nature of the omissions on the part of Valor which resulted in the Director’s decision to issue the Notice of Proposal proposing to revoke Valor’s mortgage brokerage licence, there is a significant risk of public harm if Valor continues to operate as a mortgage brokerage. Accordingly, the criteria for issuance of an interim suspension order are satisfied.

DATED at Toronto, Ontario, March 20, 2023

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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