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FSRA issues notice of proposal against Ranjit Dhillon, Aid Almusri, Kamal Dhillon and Mortgage Smart Inc.

The Financial Services Regulatory Authority of Ontario (FSRA) has initiated enforcement action against Ranjit Dhillon, Aid Almusri (Almusri), Kamal Dhillon and Mortgage Smart Inc. (Mortgage Smart).

FSRA alleges that Mortgage Smart contravened the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act) and its regulations as follows:

  1. By failing to take reasonable steps to ensure that mortgages arranged for the borrowers were suitable for them, contrary to subsection 24(1) of Ontario Regulation 188/08.
  2. By failing to disclose all material risks, contrary to subsection 25(1) of Ontario Regulation 188/08.
  3. By failing to disclose conflicts of interest contrary to subsection 27(1) of Ontario Regulation 188/08.
  4. By giving false and deceptive information to lenders and borrowers when dealing in mortgages, contrary to subsection 43(1) of the Act.
  5. By providing false or misleading information to FSRA, contrary to subsections 45(2) of the Act.
  6. By failing to address complaints alleging misconduct in accordance with subsection 9(1) of Ontario Regulation 188/08.
  7. By failing to notify the Chief Executive Officer that there may be reasonable grounds upon which FSRA could determine that Ranjit Dhillon and Almusri were not suitable to be licensed under the Act, contrary to subsection 43(3) of Ontario Regulation 188/08.
  8. By failing to retain all records that relate to a mortgage for at least six years after the expiry of the term of the mortgage or renewal or other expiry of the mortgage transaction, contrary to subsection 48(1) of Ontario Regulation 188/08.

FSRA alleges that Ranjit Dhillon and Almusri contravened Section 3 of Ontario Regulation 187/08 by causing Mortgage Smart to engage in the conduct above. Furthermore, FSRA alleges that Ranjit Dhillon and Almusri also contravened the Act as follows:

  1. By giving false and deceptive information to lenders and borrowers when dealing in mortgages, contrary to subsection 43(2) of the Act.
  2. By providing false or misleading information to FSRA, Almusri contravened subsection 45(1) of the Act and Ranjit Dhillon contravened subsection 45(2) of the Act.

FSRA alleges that Kamal Dhillon contravened the Act and its regulations as follows:

  1. By providing false or misleading information to FSRA, contrary to subsection 45(2) of the Act.
  2. By failing to take reasonable steps to ensure that the brokerage, and each broker and agent authorized to deal or trade in mortgages on its behalf complies with the requirements under the Act, contrary to subsection 2(1) of Ontario Regulation 410/07.
  3. By failing to ensure that Mortgage Smart takes reasonable steps to deal with any contraventions of the Act by the brokerage or by a broker or agent authorized to deal or trade in mortgages on its behalf, contrary to subsection 2(2) of Ontario Regulation 410/07.
  4. By failing to review and ensure that Mortgage Smart had adequate policies and procedures dealing with the maintenance and retention of records, identification of conflicts of interest and compliance of its brokers and agents, contrary to clause (a) of subsection 3(1) of Ontario Regulation 410/07.

In view of the above and for the reasons stated in FSRA’s Notice of Proposal, FSRA has determined that Mortgage Smart, Ranjit Dhillon, Almusri, and Kamal Dhillon are no longer suitable to be licenced under the Act.

FSRA is proposing to refuse to renew Ranjit Dhillon’s mortgage broker licence and Almusri’s mortgage agent licence and to revoke Kamal’s Dhillon’s mortgage broker’s licence and the mortgage brokerage licence issued to Mortgage Smart. FSRA is also proposing to impose administrative penalties against Ranjit Dhillon in the amount of $80,000, against Almusri in the amount of $77,000, against Kamal Dhillon in the amount of $22,500 and against Mortgage Smart in the amount of $170,000.

Ranjit Dhillon, Almusri, Kamal Dhillon and Mortgage Smart have requested a hearing before the Financial Services Tribunal about this proposal.

Learn more:

FSRA is working to protect consumers through its monitoring and enforcement activities.

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at www.fsrao.ca.

For media inquiries:

Russ Courtney
Senior Manager, Media Relations, Social Media and Issues Management
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]

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Enforcement Actions