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 Preeti Amin

MINUTES OF SETTLEMENT AND UNDERTAKING

PART I - INTRODUCTION

1. Preeti Amin ("Amin") was licensed as a mortgage agent (licence #M19001463) under the Act beginning on July 5, 2019, until the expiry of her licence on March 31, 2023.
2. Canada Mortgage Group Inc. ("Canada Mortgage Group") is licensed as a mortgage brokerage (licence #12401) under the Act and has been licensed as such since July 24, 2013. Raaj Vikash (Roger) Kalwaney ("Kalwaney") is, and was at all material times, the sole director and officer, and the principal broker of Canada Mortgage Group.
3. On September 8, 2023, the Director, Litigation and Enforcement (the "'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 Amin, Canada Mortgage Group, and Kalwaney, (the "NOP"), proposing to impose administrative penalties on Amin, Canada Mortgage Group, and Kalwaney.
4. The NOP was delivered to Amin on or around September 9, 2023. Amin disputed the allegations in the NOP and on September 12, 2023, requested a hearing before the Financial Services Tribunal (the "Tribunal") in respect of the NOP.
5. Amin 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. FSRA asserted certain facts with respect to the conduct of Amin in Part II of the NOP. FSRA alleged certain contraventions of the Act and its Regulations on the part of Amin in Part 111 of the NOP.
7. "SJ" is a lawyer licensed to practice law in Ontario and is the sole director and principal of "BLPC", a legal practice. Kalwaney and SJ are married. Canada Mortgage Group and BLPC operated out of the same office address during the relevant time.
8. "SW' is a mortgage agent licensed under the Act.
9. At all material times, Amin and SW were authorized to deal and trade in mortgages by and on behalf of Canada Mortgage Group.
10. In or around March 2021, Canada Mortgage Group, through Amin, arranged two mortgages from private lenders for two senior citizen borrower clients with low incomes.
11. The mortgages were for a term of one year and the APR on the total disclosed cost of borrowing ranged from approximately 20% to 27%. The interest on the mortgages were deducted from the mortgage proceeds as an upfront payment.
12. Canada Mortgage Group referred the borrower clients to SJ who acted for the clients during their respective mortgage transactions.
13. Further, between March and September 2021, Canada Mortgage Group, through Amin, brokered mortgages for three borrower clients which were funded by FFI, a private lender and mortgage administrator licensed under the Act. Kalwaney and SW were directors and officers of FFI during the relevant time. Canada Mortgage Group represented both the borrower clients and FFI in all of the aforesaid transactions.
14. ECC, a corporation, referred all of the aforementioned borrower clients to Canada Mortgage Group.
15. In respect of the above facts Amin agrees to and admits as below with respect to the above mortgage transactions:
    1. Amin failed to take reasonable steps to ensure that the mortgages presented to two borrower clients were suitable for them, contrary to section 3 of Ontario Regulation 187/08.
    2. Amin failed to adequately disclose in writing all the material risks associated with mortgages arranged for two borrower clients, contrary to section 3 of Ontario Regulation 187/08.
    3. Amin failed to adequately disclose in writing, Canada Mortgage Group's and Kalwaney's relationship with SJ and FFI to her borrower clients contrary to section 3 of Ontario Regulation 187/08.

PART Ill - NON-COMPLIANCE WITH THE ACT

16. By engaging in the conduct described in Part II of these Minutes Amin admits and acknowledges that she breached section 3 of Ontario Regulation 187/08.
17. In view of the above non-compliance, Amin consents to the imposition of administrative penalties in the amount of $10,000 pursuant to section 39 of the Act. Amin agrees to pay such administrative penalties.

PART IV - TERMS OF SETTLEMENT

18. Amin agrees to the facts stated in Part II of these Minutes and admits to the contraventions stated in Part Ill of these Minutes.
19. Amin acknowledges and agree that she has been given the opportunity to seek independent legal advice and has done so (or has waived the right to do so) and is entering into these Minutes of Settlement voluntarily, understanding the consequences of doing so.
20. Amin acknowledges 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 administrative penalties, or a prosecution under the Provincial Offences Act.

(a) Issuance of Notice of Proposal, Order, etc.

21. Amin acknowledges that, upon execution of these Minutes by both Parties, the Order imposing administrative penalties attached as Schedule "A" to these Minutes will be issued.

(b) Process for Execution of Settlement

22. Amin acknowledges that these Minutes are not binding on the Director until signed by the Director.
23. 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.
24. Upon receiving an executed copy of these Minutes from FSRA, Amin will withdraw her Request for Hearings (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 two (2) business days.
25. 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 order in the form attached as Schedule "A" to these Minutes.
26. 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 Order

27. The Parties will keep the terms of these Minutes and the Order confidential until the Order is issued, except that:
    1. The Director shall be permitted to disclose the Minutes and the Order within FSRA; and
    2. The Parties shall be permitted to inform the Financial Services Tribunal.
28. If either of the Parties do not sign these Minutes or the Director does not issue the Order:
    1. These Minutes, the Order, and all related discussions and negotiations will be without prejudice to FSRA and Amin; and
    2. FSRA, and Amin 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 Order, or any related discussions or negotiation.
29. Upon issuance of the Order:
    1. Amin agrees that these Minutes and the Order form part of her 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. Amin acknowledges that these Minutes and the Order 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 Order; 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 Order.

(d) Further Proceedings

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

DATED at Markham, Ontario, August 17, 2024.

Original signed by

Preeti Amin

DATED at Markham, Ontario, August 17, 2024.

Original signed by

Melina Solimena
Name of Witness

DATED at Toronto, Ontario, September 4, 2024.

Original signed by

Elissa Sinha
Director, Litigation and Enforcement
Financial Services Regulatory Authority of Ontario

By delegated authority from the Chief Executive Officer

SCHEDULE 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 38, and 39;

AND IN THE MATTER OF Preeti Amin

ORDER TO IMPOSE ADMINISTRATIVE PENALTIES

Preeti Amin ("Amin") was licensed as a mortgage agent (licence #M19001463) under the Act beginning on July 5, 2019, until the expiry of her licence on March 31, 2023

On September 8, 2023, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario ("FSRA"), the Director, Litigation and Enforcement (the "Director") issued a Notice of Proposal proposing to, among other things, impose administrative penalties on Amin for contravening section 3 of Ontario Regulation 187/08.

The Notice of Proposal was delivered to Amin on or around September 9, 2023. A Request for Hearing (Form 1) dated September 12, 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 [TBD], Amin withdrew the Request for Hearing and on [TBD] the Tribunal closed its file with respect to the matter. This order is made pursuant to a Minutes of Settlement and Undertaking (the "Minutes") entered into by Amin and the Director on [TBD].

ORDER

Administrative penalties in the amount of $10,000 is hereby imposed on Preeti Amin ("Amin"), for the reasons set out in the Minutes of Settlement dated TBD.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario ("FSRA") will deliver an invoice to Amin with information as to where and how to make the payment.

If Amin 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,

Elissa Sinha
Director, Litigation and Enforcement
Financial Services Regulatory Authority of Ontario

By delegated authority from the Chief Executive Officer

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