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 Shan Jamal

NOTICE OF PROPOSAL TO IMPOSE ADMINISTRATIVE PENALTIES

TO: Shan Jamal

TAKE NOTICE THAT pursuant to section 39 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 impose two administrative penalties on Shan Jamal:

1. $10,000 for contravening subsection 2(3) of the Act by dealing in mortgages in Ontario for remuneration while not acting on behalf of his mortgage brokerage; and
2. $10,000 for contravening subsection 4(1) of Ontario Regulation 187/08 by receiving fees for dealing or trading in mortgages from a person or entity other than the brokerage on whose behalf he was authorized to deal or trade in mortgages.

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 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 W, 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 impose two administrative penalties in the total amount of $20,000 on Shan Jamal (“Jamal”).

II. BACKGROUND

A. Parties

2. Jamal was previously licensed as a Mortgage Agent Level 2 (license #M14001503). Jamal was initially licensed on August 28, 2014, and his license expired on March 31, 2024. Jamal has not applied to renew his license.
3. During the relevant period, Jamal was authorized by Aimacon International Inc., operating as Aimacon Financial (“Aimacon”) (licence #10624). After admitting the conduct described below to his Principal Broker, Jamal was terminated by Aimacon on February 8, 2024.
4. Jamal is the sole officer and director of 11209086 Canada Ltd. (“11209086”).
5. “WN” is a friend of Jamal. WN has never been licensed under the Act.

B. Dealing in mortgages outside the brokerage and receiving remuneration

6. On February 11, 2024, FSRA received a complaint from the Principal Broker of Aimacon alleging that Jamal had brokered and closed mortgage deals outside of Aimacon and had not remitted the resulting fees to Aimacon.
7. Jamal was interviewed by FSRA investigators (the “Interview”). In the Interview, Jamal admitted that in 2023 he had brokered and closed eight mortgage deals outside of Aimacon for seven borrowers (the “Borrowers”):
   1. Jamal arranged two mortgages for the borrower “JL” and received fees totaling $24,000 through 11209086;
   2. Jamal arranged one mortgage for the borrower “TL” and received fees of $8,250 through WN;
   3. Jamal arranged one mortgage for the borrowers “CK” and “SK” and received fees of $16,500 through 11209086;
   4. Jamal arranged one mortgage for the borrower “GB” and received fees of $4,000 through WN;
   5. Jamal arranged one mortgage for the borrower “MK” and received fees of $2,000 directly;
   6. Jamal arranged one mortgage for the borrowers “VS” and “RK” and received fees of $4,800 through 11209086; and
   7. Jamal arranged one mortgage for the borrowers “SY” and “JY” and received fees of $2,000 through WN.
8. Jamal met with the Borrowers, collected financial information from them, identified lenders, prepared applications, and submitted the applications to the lenders.
9. Jamal admitted in the Interview that he failed to provide the Borrowers with key disclosures and information required under the Act.
10. Aimacon confirmed that they have no records of the Borrowers or the mortgages that Jamal arranged on their behalf.

III. CONTRAVENTIONS OR FAILURES TO COMPLY WITH THE ACT

A. Dealing in Mortgages not on Behalf of a Mortgage Brokerage

11. Subsection 2(3) of the Act states 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.”
12. The Director is satisfied that Jamal contravened subsection 2(3) of the Act by dealing in mortgages for the Borrowers for remuneration, without acting on behalf of Aimacon.

B. Receiving Remuneration from Person Other Than Brokerage

13. Subsection 4(1) of Ontario Regulation 187/08 states that “A mortgage broker or agent shall not receive, directly or indirectly, any fee or other remuneration for dealing or trading in mortgages from a person or entity other than the brokerage on whose behalf he or she is authorized to deal or trade in mortgages.”
14. The Director is satisfied that Jamal contravened subsection 4(1) of Ontario Regulation 187/08 by receiving fees totaling $61,550 directly and indirectly from the Borrowers for dealing or trading in mortgages, and not from Aimacon.

IV. GROUNDS FOR IMPOSING ADMINISTRATIVE PENALTIES

15. The Director is satisfied that imposing administrative penalties on Jamal under section 39 of the Act will satisfy one or both of 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.
16. The Director is satisfied that two administrative penalties in the total amount of $20,000 should be imposed on Jamal:
    1. $10,000 for contravening subsection 2(3) of the Act; and
    2. $10,000 for contravening subsection 4(1) of Ontario Regulation 187/08.
17. 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.
18. In respect of the first criterion, the Director is satisfied that Jamal’s actions were intentional. He had been licensed since 2014 and was aware of the requirement to only deal in mortgages and receive fees through his authorizing brokerage.
19. Jamal’s actions were repeated. He acted outside his brokerage on eight occasions. Furthermore, Jamal admitted that his actions were intentional. He stated in the Interview that he took fees outside of Aimacon to help pay off a debt he had incurred. Finally, Jamal deliberately took a majority of the fees he received via 11209086 or WN in an effort to avoid detection.
20. In respect of the second criterion, the Director is satisfied that Jamal’s activities had the potential to cause significant harm. By accepting brokerage fees directly and not through Aimacon, Jamal undermined the oversight function that brokerages are required to execute within Ontario’s mortgage industry. Brokerages must maintain oversight over fees and other remuneration charged in connection with mortgage transactions in order to ensure that borrower funds are not misappropriated and borrowers are not charged unauthorized or inappropriate fees. Requiring that all fees flow through a brokerage is key to ensuring that all fees charged are compliant with the Act and regulations.
21. Furthermore, Jamal’s failure to provide the Borrowers with key disclosures and information denied the Borrowers the protections they are entitled to under the Act.
22. In respect of the third criterion, the Director has considered that Jamal admitted his contraventions to the Principal Broker of Aimacon and to FSRA investigators during the Interview.
23. In respect of the fourth criterion, as a result of Jamal’s failure to comply with the Act he received over $60,000 in fees directly for dealing in mortgages. Jamal benefitted financially in the amount of approximately $9,200 (the amount of the fees that Aimacon would have retained had Jamal acted through Aimacon in respect of the Borrowers).
24. In respect of the fifth criterion, the Director is unaware of any further contraventions or failures to comply in the preceding five years by Jamal.
25. The Director is satisfied, having regarded all the circumstances, that the proposed amounts of the administrative penalties are not punitive in nature, and the amounts are consistent with one or both purposes of section 38 of the Act.
26. Such further and other reasons as may come to my attention.

DATED at Toronto, Ontario, January 19, 2026

Original signed by

Elissa Sinha
Director, Litigation & Enforcement

By delegated authority from the Chief Executive Officer

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