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 Jaswinder Dhanoa.

MINUTES OF SETTLEMENT AND UNDERTAKING

PART I – INTRODUCTION

1. Jaswinder Dhanoa (“Dhanoa”) was licensed as a mortgage agent (licence #M15002555) under the Act beginning on December 10, 2015, until the expiry of her licence on March 31, 2022.
2. On October 18, 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 proposing to impose administrative penalties on Dhanoa (“NOP”).
3. The NOP was delivered to Dhanoa on or around October 19, 2023. Dhanoa disputed the allegations in the NOP and on October 27, 2023, requested a hearing before the Financial Services Tribunal (the “Tribunal”) in respect of the NOP.
4. Dhanoa 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

(a) Background

5. During the relevant time, Dhanoa was authorized to deal and trade in mortgages as a mortgage agent on behalf of The Mortgage Alliance Company of Canada Inc. (“Mortgage Alliance”), a mortgage brokerage licensed under the Act (licence #10530), until September 8, 2021 when she took a leave of absence. Dhanoa’s licence expired while on leave.
6. Dhanoa is not currently licensed under the Act.
7. During the relevant time, Dhanoa was also the owner of a company, Fort Financial Services Ltd. (“Fort Financial”).
8. Dhanoa submitted 20 mortgage applications to the lender between February 2020 and June 2021 and she submitted 2 mortgage applications in April and May 2018 (collectively, the “Mortgages”).

(b) False Information

9. Dhanoa submitted a total of 32 altered bank account statements in support of 22 mortgage applications submitted to the lender.
10. Dhanoa did not take any steps to confirm the information contained in the bank statements or income verification documents.
11. Dhanoa earned $84,248 and received a total of $37,942.12 in the form of commissions from the lender for the mortgages.

(c) Remuneration Outside the Brokerage

12. In eleven instances, second mortgages were placed on the properties subject to the Mortgages, typically within two weeks of the date the first mortgages were registered.
13. With respect to three of the second mortgages, Dhanoa received three separate fees through Fort Financial in the amounts of $8,000, $3,500, and $2,500, totalling $14,000.

(d) Failing to Maintain Records

14. Dhanoa utilized an email address she set up and paid for separately from her brokerage.
15. Dhanoa sent the bank statements and income verification documents to the lender using this email address.
16. Dhanoa lost access to the email address. Dhanoa is unable to locate the emails and did not provide copies of the emails containing the original documents provided to her brokerage for record retention purposes. Neither Dhanoa nor the brokerage have the original copies of the documents provided by the borrowers to support their mortgage applications.
17. In total, Dhanoa received a total of $51,942.12 for the above conduct.

PART III – NON-COMPLIANCE WITH THE ACT

18. By engaging in the conduct described in Part II of these Minutes of Settlement and Undertaking (“Minutes”), Dhanoa admits and acknowledges that she breached the following sections:
    1. section 43(2) of the Act;
    2. section 3 of Ontario Regulation 187/08; and
    3. section 4(1) of Ontario Regulation 187/08.
19. In view of the above non-compliance, Dhanoa consents to the imposition of administrative penalties in the total amount of $52,000 pursuant to section 39 of the Act. Dhanoa agrees to pay such administrative penalties. The administrative penalties are as follows:
    1. Four administrative penalties of $5,500, $5,500, $5,500 and $5,500 for contravening section 43(2) of the Act.
    2. Three administrative penalties of $10,000, $5,000, and $5,000, in the total amount of $20,000 for contravening section 4(1) of Ontario Regulation 187/08.
    3. An administrative penalty of $10,000 for contravening section 3 of Ontario Regulation 187/08 by causing her brokerage to contravene section 48 of Ontario Regulation 188/08.

PART IV – TERMS OF SETTLEMENT

20. Dhanoa agrees to the facts stated in Part II of these Minutes.
21. Dhanoa acknowledges and agrees 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 voluntarily, understanding the consequences of doing so.
22. Dhanoa 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 as may be required or a prosecution under the Provincial Offences Act.

(a) Issuance of Order

23. Dhanoa acknowledges that, upon execution of these Minutes by both Parties, the order imposing administrative penalties attached as Schedule “A” to these Minutes (“Order”) will be issued.

(b) Process for Execution of Settlement

24. Dhanoa acknowledges that these Minutes are not binding on the Director until signed by the Director.
25. 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.
26. Upon receiving an executed copy of these Minutes from FSRA, Dhanoa will withdraw her 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 two (2) business days.
27. 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.
28. 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

29. 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 Tribunal.
30. 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 the Parties; 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 Order, or any related discussions or negotiation.
31. Upon issuance of the Order:
    1. Dhanoa 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. Dhanoa 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

32. Whether or not the Order is issued, Dhanoa 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.
33. Upon issuance of the Order:
    1. Dhanoa waives all rights to a hearing before the Tribunal regarding the NOP;
    2. Dhanoa 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 Dhanoa arising solely from the facts contained in Part II of these minutes, unless facts not disclosed by Dhanoa come to the attention of FSRA that are materially different from those the facts contained in Part II of these minutes or Dhanoa fails to comply with any term in the Order; and
    4. Dhanoa 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 Brampton, Ontario, October 23, 2024.

Original signed by

Jaswinder Dhanoa

DATED at Brampton, Ontario, October 23, 2024.

Original signed by

Gideon McMaster
Name of Witness

DATED at Toronto, Ontario, October 25, 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 Jaswinder Dhanoa

ORDER TO IMPOSE ADMINISTRATIVE PENALTIES

Jaswinder Dhanoa (“Dhanoa”) was licensed as a mortgage agent (licence #M15002555) under the Act beginning on December 10, 2015, until the expiry of her licence on March 31, 2022.

On October 18, 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 impose administrative penalties on Dhanoa for contravening section 43(2) of the Act and sections 3 and 4(1) of Ontario Regulation 187/08.

The Notice of Proposal was delivered to Dhanoa on or around October 19, 2023. A Request for Hearing (Form 1) was delivered to the Financial Services Tribunal (the “Tribunal”) on October 27, 2023, in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On [TBD], Dhanoa 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 Dhanoa and the Director on [TBD].

ORDER

Eight administrative penalties in the total amount of $52,000 are hereby imposed on Jaswinder Dhanoa, for the reasons set out in the Minutes of Settlement and Undertaking.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Dhanoa with information as to where and how to pay the administrative penalties. Ocampo must pay the administrative penalties no later than thirty (30) days after the Order is issued unless otherwise agreed with the Financial Services Regulatory Authority of Ontario.

If Dhanoa 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 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

By delegated authority from the Chief Executive Officer

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