Ontario mortgage agent fined $60,000 for off-book deals and fraud
In 2019, a client identified as YTL, also a non-English speaker, was taken to a lawyer’s office to sign documents Chan had described as paperwork for an interest-free loan. The documents were for a mortgage subsequently registered against YTL’s property. Chan collected a $2,000 fee outside her brokerage.
A 2022 transaction involving a client identified as KT saw private mortgage documents substituted for line-of-credit paperwork, with loan proceeds deposited into a joint bank account shared with Chan. That deal generated a $7,000 fee outside the brokerage.
Chan also admitted receiving at least seven additional mortgage fees totalling $15,000 outside her brokerage.
Penalties and a mounting enforcement backdrop
Of the 15 penalties imposed, 11 totalling $45,000 relate to receiving remuneration outside a registered brokerage, contrary to section 4(1) of Ontario Regulation 187/08. Four totalling $15,000 were issued for providing false or deceptive information, contrary to section 43(2) of the MBLAA.
Chan must pay the full $60,000 within 30 days of the order’s issuance, or FSRA may file the order with the Superior Court of Justice for enforcement as a court judgment.
