The Financial Services Regulatory Authority of Ontario (FSRA) issued a notice of proposal commencing enforcement action against John (Johnny) Chehade, Rhett Richard (Richard Rhett) McClenaghan and 2078637 Ontario Inc. operating as Forest City Living. The proposals include refusing to renew Chehade’s mortgage agent level 2 licence, amending McClenaghan’s mortgage broker licence to restrict him to mortgage agent level 2 for two years, and imposing administrative penalties of CAD 25,000 on Chehade, CAD 6,000 on McClenaghan and CAD 30,000 on Forest City Living. FSRA alleges Chehade and McClenaghan provided false or deceptive information and documents when dealing in mortgages and allowed themselves to be used by a borrower and a lender to facilitate dishonest activity or illegal conduct, contrary to the Mortgage Brokerages, Lenders and Administrators Act, 2006 and related regulations. Additional allegations against Chehade include causing Forest City Living to fail to take reasonable steps to ensure mortgages were suitable for borrowers, receiving remuneration outside the brokerage, and providing false information to FSRA, while Forest City Living is alleged to have carried on business as a mortgage lender without being licensed or exempt. All three parties have requested a hearing before the Financial Services Tribunal.
Financial Services Regulatory Authority of Ontario 2026-01-15
Financial Services Regulatory Authority of Ontario proposes licence sanctions and CAD 61,000 penalties against Johnny Chehade, Richard Rhett McClenaghan and Forest City Living
The Financial Services Regulatory Authority of Ontario has initiated enforcement action against John Chehade, Rhett McClenaghan, and 2078637 Ontario Inc., operating as Forest City Living, proposing licence restrictions and penalties for alleged violations of the Mortgage Brokerages, Lenders and Administrators Act, 2006. Allegations include providing false information, facilitating dishonest activities, and operating without proper licensing, with all parties requesting a hearing before the Financial Services Tribunal.