IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the “Act”), in particular sections 35, 38 and 39;

AND IN THE MATTER OF Iftikhar Ahmad Qadeer.

NOTICE OF PROPOSAL TO ISSUE COMPLIANCE ORDER AND
IMPOSE ADMINISTRATIVE PENALTIES

TO: Iftikhar Ahmad Qadeer

AND TAKE NOTICE THAT pursuant to section 35 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 issue a permanent compliance order on Iftikhar Ahmad Qadeer (“Qadeer”) requiring him to:

1. Cease and desist from dealing in mortgages in Ontario, as defined by section 2(1) of the Act, or holding himself out as licensed to do so, as prohibited by section 2(3) of the Act; and
2. Cease and desist from using the email address of “mortgagesmadeeasy2016@gmail.com” and using any description that might reasonably be expected to lead to the belief that he is licensed under the Act, as prohibited by section 11(6) of the Act.

TAKE NOTICE THAT pursuant to section 39 of the Act, by delegated authority from the Chief Executive Officer, the Director is proposing to impose two (2) administrative penalties in the total amount of $7,000 on Iftikhar Qadeer (“Qadeer”) as follows:

1. An administrative penalty of $5,000 for dealing in mortgages without a mortgage broker or mortgage agent licence, contrary to section 2(3) of the Act; and
2. An administrative penalty of $2,000 for using the email address of “mortgagesmadeeasy2016@gmail.com” while not licensed as a mortgage agent, contrary to section 11(6) 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 35(3), 35(4), 39(2) AND 39(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 4 of Ontario Regulation 192/08, which states 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

1. These are reasons for the proposal by the Director to:
   1. Issue a compliance order against Qadeer; and
   2. Impose administrative penalties in the total amount of $7,000 on Qadeer.

II. BACKGROUND

A. No Licensing History with FSRA

2. Qadeer has never been licensed in the mortgage sector with the Financial Services Regulatory Authority of Ontario (“FSRA”) and is not currently licensed.

B. Overview

3. On or about October 18, 2022, FSRA received a complaint about mortgage broker, Rahman Mohammed (“Mohammed”).
4. The complaint alleged misconduct by Mohammed relating to a number of mortgage transactions, including one for consumer MJA (the “MJA Mortgage”).

C. Unlicensed Activity

5. Qadeer is a close friend of Mohammed and was involved in securing the MJA Mortgage.
6. Qadeer introduced the representing parties and attended meetings between them where details of the MJA Mortgage transaction were negotiated in order to facilitate and arrange the transaction.
7. Qadeer acted as an intermediary, passing mortgage related documents and information between parties representing the borrower and lender for the MJA Mortgage transaction. The information Qadeer provided to Mohammed, for the lenders, included MJA’s personal information and identification.
8. Mohammed had never met or spoken with MJA, and MJA did not know Mohammed was her mortgage broker.
9. Qadeer has referred a number of mortgage deals to Mohammed, usually making between $500 and $1000 per deal.
10. Emails and mortgage related documents for the MJA Mortgage were sent between Qadeer and Mohammed to Qadeer’s email address of “mortgagesmadeeasy2016@gmail.com.”
11. Qadeer’s email address made it appear that he represented the Ottawa-Carleton Mortgage Inc. o/a Mortgages Made Easy brokerage (“Mortgages Made Easy”, licence #10419), but he has never been licensed as a mortgage agent or broker.
12. The MJA Mortgage carried a high rate of interest of 10% per month on a two-month term and included a consultant fee of 15% of the loan amount. MJA defaulted on repaying the mortgage and is being sued by the lenders.

III. CONTRAVENTIONS OR FAILURES TO COMPLY WITH THE ACT

A. Dealing in Mortgages without a Licence

13. Sections 2(1) paragraphs 2 and 4 of the Act provide that a person deals in mortgages in Ontario when they, among other things, provide information about a prospective borrower to a prospective mortgage lender, and when they negotiate or arrange a mortgage on behalf of another person.
14. Section 2(3) of the Act provides that no individual shall deal in mortgages in Ontario for remuneration, whether direct or indirect, as an employee or otherwise, unless he or she has a mortgage broker’s or agent’s licence and is acting on behalf of a mortgage brokerage or is exempted from the requirement to have such a licence.
15. The Director is satisfied that Qadeer contravened section 2(3) of the Act when he acted as an intermediary by passing mortgage related documents and information to representatives of the lender, introducing, and attending meetings between representing parties to facilitate, negotiate and arrange the MJA Mortgage, and that his activities constitute dealing in mortgages, as defined by section 2(1) at paragraphs 2 and 4 of the Act, when not licensed to do so.

B. Holding Out as a Mortgage Agent or Broker Without a Licence

16. Section 11(6) of the Act prohibits the use of a description that might reasonably be expected to lead to the belief that one is a mortgage agent unless they are licensed as a mortgage agent.
17. The Director is satisfied that Qadeer contravened section 11(6) of the Act by using the email address of “mortgagesmadeeasy2016@gmail.com” to correspond with others in relation to the MJA Mortgage transaction while not licensed under the Act. Using the terms “mortgages made easy”, in the context of arranging a mortgage transaction, given the existence of a licensed brokerage with a similar name, may reasonably mislead the public into believing that Qadeer is a mortgage agent or broker with the brokerage, Mortgages Made Easy.

IV. GROUNDS FOR ISSUING A COMPLIANCE ORDER

18. Section 35(1) of the Act provides that a compliance order may be imposed on a person if the Chief Executive Officer or his delegate is satisfied that the person:
    1. is committing any act or pursuing any course of conduct that contravenes or does not comply with a requirement established under this Act;
    2. is pursuing any course of conduct that might reasonably be expected to result in a state of affairs that would contravene or not comply with a requirement established under this Act; or
    3. has committed any act or pursued any course of conduct that contravenes or does not comply with a requirement established under this Act.
19. The Director is satisfied that (a), (b) and (c) are applicable in the present circumstances.
20. As described above, Qadeer has contravened the Act by dealing in mortgages for renumeration without a licence. Qadeer provided documents and information to Mohammed regarding the MJA Mortgage and, in fact made it possible for Mohammed to submit MJA’s mortgage application without ever having met or spoken to her.
21. Qadeer has also contravened the Act by using the email address of “mortgagesmadeeasy2016@gmail.com” which may lead the public to believe that he is a mortgage agent or broker with the brokerage, Mortgages Made Easy, when in fact, he is not currently licensed under the Act and never has been.
22. The public may engage Qadeer to assist in providing mortgage services under the misapprehension that he is licensed to do so, depriving individuals of the ability to rely on a suitable, licensed individual and posing public harm if the services are provided contrary to the requirements of the Act.
23. The requirement for licensing to deal in mortgages is essential to the integrity of the Act and its regime which operates to protect the public from fraudulent activity and misconduct
24. Accordingly, the Director proposes to issue a permanent compliance order requiring that Qadeer cease dealing in and trading in mortgages and using the email address of “mortgagesmadeeasy2016@gmail.com”, contrary to the Act

V. GROUNDS FOR IMPOSING ADMINISTRATIVE PENALTIES

25. The Director is satisfied that imposing administrative penalties on Qadeer under section 39 of the Act will satisfy the following purposes under section 38(1) of the Act:
    1. To promote compliance with the requirements established under the Act.
    2. To prevent a person or entity from deriving, directly or indirectly, any economic benefit as a result of contravening or failing to comply with a requirement established under the Act.
26. The Director is satisfied that two administrative penalties in the total amount of $7,000 should be imposed on Iftikhar Qadeer as follows:
    1. an administrative penalty of $5,000 for dealing in mortgages without a mortgage broker or mortgage agent licence, contrary to section 2(3) of the Act; and
    2. an administrative penalty of $2,000 for using the email address of “mortgagesmadeeasy2016@gmail.com” while not licensed as a mortgage agent, contrary to section 11(6) of the Act.
27. In determining the amount of the administrative penalties, the Director has considered the following criteria as required by section 3 of Ontario Regulation 192/08:
    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.
    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.
28. In respect of the first criterion, the Director is satisfied that Qadeer’s actions were intentional. Qadeer dealt in mortgages with respect to the MJA Mortgage by acting as an intermediary who facilitated and arranged the MJA Mortgage, provided mortgage related documents and information to Mohammed, for the lenders, and MJA, introduced the parties, and attended meetings where the terms were negotiated. Qadeer was so involved in the MJA Mortgage transaction that Mohammed submitted the mortgage documents obtained by Qadeer without ever having met or spoken to MJA.
29. Qadeer also intentionally used the email address of “mortgagesmadeeasy2016@gmail.com” which is likely to mislead the public into thinking he is a licensed mortgage agent or broker with the brokerage, Mortgages Made Easy.
30. In respect of the second criterion, the Director believes that Qadeer created actual consumer harm as MJA could not afford to pay the MJA Mortgage, defaulted, and is facing legal proceedings by the lenders.
31. In respect of the third criterion, the Director is unaware of any efforts by Qadeer to mitigate any loss or take other remedial action.
32. In respect of the fourth criterion, it is reasonable to infer that Qadeer anticipated a fee being paid at the time of his conduct.
33. In respect of the fifth criterion, the Director is not aware of 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 Qadeer.
34. The Director is satisfied, having regard to all the circumstances, that the proposed amount of the administrative penalties are not punitive in nature as required by section 3(2) of Ontario Regulation 192/08, and the amount is consistent with one or both purposes of section 38 of the Act.
35. Such further and other reasons as may come to the attention of the Director.

DATED at Toronto, Ontario, October 30, 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.