IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006,
S.O. 2006, c.29, as amended (the "Act"), in particular sections 14, 21, 38, and 39;

AND IN THE MATTER OF Harpinder "Nancy" Deol

MINUTES OF SETTLEMENT AND UNDERTAKING

PART I- INTRODUCTION

1. Harpinder "Nancy" Deol ("Deol") was licensed as a mortgage agent from July 1, 2008, to April 1, 2023 (licence #M08006362).
2. After the expiry of her licence, Deol applied on December 19, 2023, to reinstate her mortgage licence. Deol withdrew this application on January 15, 2024.
3. Deol subsequently re-applied for a mortgage agent license on March 6, 2024.
4. On July 29, 2024, the Director, Litigation & Enforcement (the "Director'') 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 to impose Administrative Penalties in respect of Deol, and on August 1, 2024, the Director issued a Notice of Proposal to refuse to issue a license in respect of Deol (together, the "NOPs").
5. Deol disputed the allegations and, on or about August 2, 2024, and August 6, 2024, requested a hearing before the Financial Services Tribunal (the "Tribunal") in respect of the NOPs.
6. Deol and the Director, by delegated authority from the CEO, (collectively the "Parties") wish to resolve the NOPs and all matters that are referred to therein and that could or should have been raised therein, on consent and without a hearing before the Tribunal.

PART II - AGREED FACTS

7. During the relevant time, Deol was licensed through the mortgage brokerage The Mortgage Alliance Company of Canada Inc., operating as Mortgage Alliance ("Mortgage Alliance").
8. 1539339 Ontario Inc. ("1539339") is a private corporation. Prior to February 16, 2022, Deol was the sole shareholder, director, and officer of 1539339. On February 16, 2022, Vikas Kumar ("Kumar") purchased all of Deol's shares of 1539339 and agreed to become the sole director and officer of 1539339. Kumar did not document these changes for several months, nor did he promptly effect the changes to 1539339's bank accounts. As a result, for a number of months, Deol remained as the signing authority over 1539339's bank account.
9. During the relevant time, "AJ" and "GS" were a couple that resided in Ontario.
10. In April 2022, AJ and GS were referred to Deol in connection with a property they had purchased in both of their names, and their desire to arrange a mortgage in order to complete the transaction.
11. The purchase of the property was scheduled to be completed on June 2, 2022.
12. On or about May 17, 2022, Deol arranged for a property appraisal in respect of the property purchased by AJ and GS.
13. Throughout the relevant time, AJ and GS were represented by their own independent lawyer from whom they received independent legal advice and who represented them on the transaction.
14. In the days approaching the completion of the purchase transaction, an issue arose as the vendor refused to complete the transaction solely in GS's name and the mortgage commitment that had been issued by a major bank (the "Bank") had only been issued in GS's name and not in the name of GS and AJ.
15. AJ and GS sought Deol's assistance. Deol recommended that AJ and GS work with their lawyer and the Bank representative to resolve this issue.
16. Deol further maintains that she advised AJ and GS that the Bank representative had advised that AJ and GS needed to pay him a sum of money to resolve the issue.
17. On May 30 and 31, 2022, AJ and GS attended at Deol's office and gave her a total of $34,500 in cash. AJ and GS requested that Deol deliver the money to the Bank representative for them.
18. Deol maintains that Deol confirmed to AJ and GS that she was not keeping any of the money they had given to her and that, at their request, she would deliver the money to a representative at the Bank.
19. On the day that the transaction was to be completed, the issue had not been resolved and AJ and GS sought Deol's recommendation as they were concerned with not completing the purchase transaction and losing their deposit. Deol suggested that they could contact an individual who might be able to arrange a private mortgage for them in short order to enable them to complete the purchase transaction.
20. With the assistance of and relying on the advice of their lawyer, on June 2, 2022, AJ and GS obtained a $1,000,000 mortgage from 1539339.
21. At the request of Kumar, Deol obtained the $1,000,000 bank draft from a bank account of 1539339 necessary to complete the purchase transaction.
22. Mortgage Alliance has no records of the mortgage from 1539339.

PART Ill - NON-COMPLIANCE WITH THE ACT

23. By engaging in the conduct described above in Part II, Deol admits and acknowledges that she breached the Act as follows:
    1. Dealing in mortgages for remuneration (which Deol maintains she did not receive or retain) while not acting on behalf of her brokerage, contrary to subsection 2(3) of the Act; and
    2. Receiving a payment of money (which Deol maintains she did not retain) from a person other than her brokerage, contrary to subsection 4(1) of Ontario Regulation 187/08.

PART IV-TERMS OF SETTLEMENT

24. Deol admits the facts contained in Part II of these Minutes of Settlement and Undertaking ("Minutes").
25. Deol 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.
26. Deol 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 an administrative penalty, or a prosecution under the Provincial Offences Act.

(a) Issuance of Order

27. Deol acknowledges that, upon execution of these Minutes by both Parties, the orders attached as Schedule "A" to these Minutes (the "Orders") will be issued.

(b) Process for Execution of Settlement

28. Deol acknowledges that these Minutes are not binding on the Director until signed by the Director.
29. 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.
30. Upon receiving an executed copy of these Minutes from FSRA, Deol will withdraw her Request for Hearing (Form 1) in respect of the NOPs before the Tribunal by completing a Withdrawal/Discontinuance (Form 5) and filing it with the Registrar at the Tribunal within two business days.
31. 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 Orders in the form attached as Schedule "A" to these Minutes.
32. 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

33. The Parties will keep the terms of these Minutes and the Orders confidential until the Orders are issued, except that:
    1. The Director shall be permitted to disclose the Minutes and the Orders within FSRA; and
    2. The Parties shall be permitted to inform the Financial Services Tribunal.
34. If either of the Parties do not sign these Minutes or the Director does not issue the Orders:
    1. These Minutes, the Orders, and all related discussions and negotiations will be without prejudice to FSRA and Deol; and
    2. FSRA and Deol will each be entitled to all available proceedings, remedies and challenges, including proceeding to a hearing of the allegations contained in the NOPs. Any proceedings, remedies and challenges will not be affected by these Minutes, the Orders, or any related discussions or negotiations.
35. Upon issuance of the Orders:
    1. Deol agrees that these Minutes and the Orders 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 her or any affiliated entities;
    2. Deol acknowledges that these Minutes and the Orders 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 Orders; 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 Orders.

(d) Further Proceedings

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

DATED Dec 10, 2024 at Mississauga, Ontario.

Original signed by

Harpinder "Nancy" Deol

DATED Dec 10, 2024 at Mississauga, Ontario.

Original signed by

Gurkirpal Sidhu
Name of Witness

DATED December 10, 2024 at Toronto, Ontario.

Original signed by

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

By delegated authority from the Chief Executive Officer

APPENDIX 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 14, 21, 38, and 39;

AND IN THE MATTER OF Harpinder "Nancy" Deol ("Deol")

ORDER TO IMPOSE AN ADMINISTRATIVE PENALTY
AND TO IMPOSE CONDITIONS ON LICENCE

Deol was licensed as a mortgage agent from July 1, 2008, to April 1, 2023 (licence #M08006362). Deol subsequently re-applied for a mortgage agent license on March 6, 2024.

On July 19, 2024, the Director, Litigation & 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 to impose Administrative Penalties in respect of Deol, and on August 1, 2024, the Director issued a Notice of Proposal to refuse to issue a license in respect of Deol (together, the "NOPs").

Requests for Hearing (Form 1), dated August 2, 2024, and August 6, 2024, were delivered to the Financial Services Tribunal (the "Tribunal") in accordance with sections 21(3) and 39(5) of the Act respecting the NOPs.

On [date], Deol withdrew the Request for Hearings, and, on [date], the Tribunal closed its file in respect of this matter. Therefore, pursuant to sections 21(7) and 39(7) of the Act, the Director makes the following Orders.

ORDER

An administrative penalty in the amount of $55,000 is hereby imposed on Harpinder "Nancy" Deol, for the reason set out in the Minutes of Settlement.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Harpinder "Nancy" Deol with information as to where and how to pay the administrative penalties. Harpinder "Nancy" Deol 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 Harpinder "Nancy" Deol 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 the 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

ORDER

A Level 1 mortgage agent licence will be issued forthwith and no later than 7 days following the execution of the Minutes of Settlement to Deol.

For the reasons set out in the Minutes of Settlement, the following conditions are imposed on the Level 1 mortgage agent licence issued to Harpinder "Nancy" Deol ("Deol") for a period of nine months:

1. Deol shall not be eligible to apply for a Level 2 mortgage agent license prior to the expiration of that nine-month period;
2. Deol's work as a mortgage agent will be supervised by the licensed mortgage broker with at least two years of experience (the "Supervisor''), who has been accepted by the CEO;
3. Deol and the Supervisor shall submit monthly written reports to the Senior Manager, Market Conduct Action Team (the "Senior Manager''), regarding Deol's mortgage agent business activities, if any;
4. Deol must facilitate the Supervisor's review of all of her activities relating to dealing or trading in mortgages, if any;
5. Deol must provide the Supervisor with copies of all mortgage applications, if any, she has prepared in advance of submission to the lender or potential lender;
6. Deol is required to ensure that all mortgage applications, mortgage disclosure document and every mortgage lender commitment, if any, have been initialed and dated by the Supervisor and maintain evidence of the Supervisor's review;
7. Deol shall provide the Supervisor with all of the information and documentation the Supervisor requested by the Supervisor of Deol to discharge their obligations;
8. If the Supervisor cannot continue to supervise Deol, the Supervisor and/or Deol shall notify the Senior Manager within 5 business days of the Supervisor withdrawing their supervision;
9. If the Supervisor ceases supervising Deol, Deol shall cease all mortgage agent business activity immediately until a new supervisor has been approved in writing by the CEO or his delegate;
10. Deol is subject to an examination of her mortgage files from time-to­ time at the discretion of the CEO or his delegate, acting reasonably;
11. If Deol ceases to be licensed with her brokerage, Deol will notify the Senior Manager in writing within 5 business days and Deol agrees to stop all mortgage agent activities until:
    1. Deol informs the Senior Manager in writing of her new mortgage brokerage; and
    2. A new Supervisor is approved by the Senior Manager, which approval shall not be unreasonably withheld, and submits a signed undertaking in respect of the above terms.

DATED at Toronto, Ontario,

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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