IN THE MATTER OF the Insurance Act, R.S.O. 1990, c. I.8 (the “Act”), in particular sections 288.6, 288.7, 441.2 and 441.3;

AND IN THE MATTER OF Warden Wellness Centre Ltd.;

AND IN THE MATTER OF Anusuya Gobinathan.

NOTICE OF PROPOSAL TO REVOKE LICENCE AND
TO IMPOSE ADMINISTRATIVE PENALTY

TO:
Warden Wellness Centre Ltd.
206 – 5215 Finch Ave East
Scarborough, ON M1S 0C2

Anusuya Gobinathan
Principal Representative

AND TO: Anusuya Gobinathan

TAKE NOTICE THAT pursuant to sections 288.6 and 288.7 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 revoke the service provider’s licence issued to Warden Wellness Centre Ltd. (licence # SP18987).

AND TAKE NOTICE THAT pursuant to section 441.3 of the Act, and by delegated authority from the Chief Executive Officer, the Director is proposing to impose an administrative penalty in the total amount of $10,000 on Anusuya Gobinathan for furnishing false, misleading, or incomplete information to the Financial Services Regulatory Authority of Ontario (“FSRA”), contrary to section 447(2)(a) of the Act.

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 288.7(2), 288.7(3), 441.3(2) AND 441.3(5) 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. TAKE FURTHER NOTICE of the payment requirements in section 5 of Ontario Regulation 408/12, which state that the penalized person or entity shall pay the penalty no later than thirty (30) days after the person or entity is given notice of the order imposing the penalty, after the matter is finally determined if a hearing is requested or such longer time as may be specified in the order.

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, a 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

The Director believes, on reasonable grounds, that Warden Wellness Centre Ltd. (“Warden Wellness”) is not suitable to be licenced having regard to the prescribed circumstances relating to the licensees’ business systems and practices, and the management of their operations.
The Director has reasonable grounds to believe that Warden Wellness’s business systems and practices, and the management of its operations will not be carried on in accordance with the law, or with integrity and honesty.
Additionally, Anusuya Gobinathan (“Gobinathan”) provided false or misleading information in Warden Wellness’s licence application.
These are the reasons for the proposal by the Director to revoke the service provider licence issued to Warden Wellness and to impose an administrative penalty of $10,000 on Gobinathan.

II. BACKGROUND

Warden Wellness is licensed as a service provider under the Act from December 20, 2023. Warden Wellness was incorporated on November 24, 2023.
Gobinathan is the Principal Representative and the sole director and officer of Warden Wellness.
Warden Wellness provided the address 5215 Finch Avenue East, Unit 206, Scarborough, Ontario on its’ licence application. This is the address listed in its corporate profile as well. Gobinathan provided her personal cellphone number as the clinic’s business telephone number.
Gibson Wellness Centre Inc., licence #SP17757, (“Gibson Centre”) and Gibson Wellness Group Ltd., licence #SP18559, (“Gibson Group”, collectively “Gibson Wellness”) were previously licensed as service providers under the Act. Gibson Wellness were both located at 7130 Warden Avenue, Unit 606, Markham, Ontario.
On November 21, 2023, FSRA issued and served an interim suspension order and notice of proposal (the “Previous NOP”) to revoke the licences of Gibson Wellness due to fraudulent billing. FSRA also proposed to impose administrative penalties against Gibson Centre, the previous principal representative of Gibson Centre, and Thavendrarajah Krishnan (“Thavem”).
On December 12, 2023, FSRA issued orders revoking the licences and imposing administrative penalties after no party named in the Previous NOP requested a hearing before the Tribunal.
Gibson Wellness and Thavem have not paid the administrative penalties issued against them.

Warden Wellness Centre

On December 1, 2023, Gobinathan applied for a service provider licence for Warden Wellness. The application form included several questions where the connection to Gibson Wellness, Warden Avenue location, and previous enforcement should have been disclosed.
Warden Wellness has taken over the business of Gibson Wellness, which were subject to revocations by FSRA. Evidence of this includes:
1. Thavem’s name appears on a door inside the offices of Warden Wellness and it appears he works there.
2. The telephone number on invoices for Warden Wellness is the same as the telephone number for Gibson Centre, which is different from the telephone number provided on the application.
3. Warden Wellness operates out of 7130 Warden Avenue, Unit 606, Markham, Ontario, the premises previously used by Gibson Wellness. The operating address was not disclosed on the application for licence.
4. Several health care practitioners who worked at Gibson Wellness work at Warden Wellness.
5. Eight claimants who previously attended Gibson Wellness continued their treatment with Warden Wellness.
6. Warden Wellness was incorporated three days after the Previous NOP was issued against Gibson Wellness and applied for a license 8 days after FSRA revoked the licenses of Gibson Wellness.
On July 16, 2024, FSRA interviewed Gobinathan, the Principal Representative of Warden Wellness.
Gobinathan stated that she was a client of Gibson Wellness.
Gobinathan stated that she was hired in September 2023. She denied meeting Thavem and was not able to explain why Thavem’s name had not been removed from the door. Additionally, she was unable to answer questions regarding the Health Claims for Automobile Insurance system, a key component of the licence, or specific responsibilities of a Principal Representative. This is similar to the previous principal representative of Gibson Group, who was unable to answer any basic questions regarding the business or regulatory requirements.
Gobinathan stated that the Finch Avenue address was to be used for the business but was not big enough. The Finch Avenue property is owned by a corporation controlled by Thavem.
Gobinathan stated that she was hired by PB, a health care practitioner at Warden Wellness who previously worked at Gibson Wellness.
After the interview, Gobinathan undertook to provide bank statements and other documentation requested by FSRA Investigators. Gobinathan has failed to comply with this undertaking.
On July 31, 2024, FSRA interviewed PB. PB denied hiring Gobinathan or having any involvement with the management of Gibson Wellness or Warden Wellness.

III. CONTRAVENTIONS OR FAILURES TO COMPLY WITH THE ACT

False or Misleading Statements to FSRA

Section 447(2)(a) of the Act states that it is an offence to directly or indirectly furnish false, misleading or incomplete information to the Authority whether the information is required under the Act or is volunteered.
The Director is satisfied that Warden Wellness and Gobinathan submitted false, misleading and incomplete information to FSRA in the licence application. Gobinathan and Warden Wellness intentionally obscured the nature of Warden Wellness and its connection to Gibson Wellness by providing an incorrect telephone number and business address.
The false, misleading, and incomplete information concealed the true nature and operations of Warden Wellness, preventing FSRA from assessing the application for suitability and circumventing the previous enforcement actions against Gibson Wellness.

IV. GROUNDS FOR REVOCATION OF LICENCE

Section 288.6(1) of the Act states that the Chief Executive Officer may, by order, revoke or suspend a service provider’s licence in any of the following circumstances:
1. The licensee ceases to satisfy a prescribed requirement for issuance of the licence.
2. The licensee has contravened or failed to comply with this Act, the regulations or a condition of the licence.
3. The Chief Executive Officer believes, on reasonable grounds, that the licensee is no longer suitable to be licensed having regard to such circumstances as may be prescribed relating to the licensee’s business systems and practices and the management of its operations or having regard to such other matters as the Chief Executive Officer considers appropriate.
4. Such other circumstances as may be prescribed.
Pursuant to section 2(1) of Ontario Regulation 348/13, the Chief Executive Officer shall consider whether the past conduct of the principal representative provides reasonable grounds for the belief that the service provider’s business systems and practices and the management of its operations will not be carried on in accordance with the law or with integrity and honesty.
Pursuant to section 2(2) of Ontario Regulation 348/13, the Chief Executive Officer may also consider the past conduct of an individual who may have a beneficial interest in the applicant’s business or who exercises control, either directly or indirectly, over the applicant.
Firstly, Warden Wellness and Gobinathan provided false information to FSRA in the licence application. This demonstrates unsuitability to hold a licence as the false information was intended to conceal the true ownership and operations of Warden Wellness, and specifically its relationship to Gibson Wellness. The Director is satisfied that Warden Wellness and Gobinathan contravened the Act.
Secondly, having regard to the past conduct of Warden Wellness, and its predecessors, Gibson Wellness, including false information in licensing applications, there are reasonable grounds to believe that the activities conducted by or on behalf of Warden Wellness will not be carried out in accordance with the law or with integrity and honesty.
Thirdly, the Director has reasonable grounds to believe that Thavem is an interested person in Warden Wellness, and, because of his past conduct, the business systems and practices of both licensees will not be carried on in accordance with the law or with integrity and honesty. Thavem has installed other individuals as principal representatives to hide his involvement in previous clinics from the regulator, and it appears he is doing so with Warden Wellness.
FSRA must assess suitability keeping in mind that the purpose of licensing is to ensure that the public receives competent and ethical services from those licensed to participate in the industry. As such, the questions posed to those who apply for licenses or renewals under the Act are vitally important to FSRA in assessing the suitability and qualifications of applicants. These questions are a necessary screening tool to protect the public from unqualified, unsuitable, and unscrupulous persons.
Accordingly, the Director is satisfied that Warden Wellness is not suitable to be licensed as a service provider under the Act.

V. GROUNDS FOR IMPOSING GENERAL ADMINISTRATIVE PENALTIES

The Director is satisfied that imposing an administrative penalty under section 441.3(1) of the Act for the contravention of section 447(2)(a), described above will satisfy both of the following purposes under section 441.2(1):
1. To promote compliance with the requirements established under the Act; and
2. To prevent a person from deriving, directly or indirectly, any economic benefit because of contravening or failing to comply with a requirement established under the Act.
The Director is satisfied that an administrative penalty in the amount of $10,000 should be imposed on Gobinathan. As the person in control of Warden Wellness, Gobinathan’s false, misleading, and incomplete information on the licence application has allowed Gibson Wellness to circumvent the enforcement sanctions imposed on it.
Sections 447(2)(a) is listed in Schedule 1 of Ontario Regulation 408/12 and contraventions of this section carry a maximum penalty of $100,000 for an individual and $200,000 for a corporation.
In determining the amount of the administrative penalties, the Director has considered the following criteria as required by section 4(2) of Ontario Regulation 408/12:
1. The degree to which the contravention or failure was intentional, reckless or negligent;
2. The extent of the harm or potential harm to others resulting from the contravention or failure;
3. The extent to which the person or entity tried to mitigate any loss or take other remedial action;
4. The extent to which the person or entity derived or reasonably might have expected to derive, directly or indirectly, any economic benefit from the contravention or failure; and
5. Any other contraventions or failures to comply with a requirement established under the Act or with any other financial services legislation of Ontario or of any jurisdiction during the preceding five years by the person or entity.
In respect of the first criterion, the Director is satisfied that Gobinathan acted intentionally or recklessly in providing false information on the licence application. Gobinathan was aware of the actual telephone number and business address of Warden Wellness when she submitted the licence application.
In respect of the second criterion, the Director is satisfied that Gobinathan has caused actual and potential harm by establishing a new entity in which Thavem can continue to operate. Thavem and Gibson Centre caused serious economic harm by submitting fraudulent invoices and charging insurers for services not provided, and Gobinathan has set up an entity in which Thavem can continue his fraudulent business.
In respect of the third criterion, Gobinathan took no steps to mitigate the harm caused by her actions. Gobinathan continued to provide false information through her interview with FSRA to obscure the actual ownership and operations of Warden Wellness.
In respect of the fourth criterion, the Director is satisfied that Gobinathan has retained an economic benefit from her employment at Warden Wellness.
In respect of the fifth criterion, the Director is unaware of any contraventions or failures to comply with a requirement established under the Act or with any other financial services legislation in Ontario or of any jurisdiction during the preceding five years by Gobinathan.

DATED at Toronto, Ontario, September 11, 2024.

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.

NOTICE OF PROPOSAL TO REVOKE LICENCE AND TO IMPOSE ADMINISTRATIVE PENALTY