Financial Services Regulatory Authority of Ontario launches mortgage enforcement action and proposes CAD 155,000 in penalties

The Financial Services Regulatory Authority of Ontario has initiated enforcement action against Iqbal Singh Saini, 13016161 Canada Inc. operating as Infinite Mortgage Solutions, Sadik Sadik and Emerald Lending Group Inc. It is proposing administrative penalties totaling CAD 155,000 for alleged breaches of Ontario mortgage brokerage and lending rules, including dealing in mortgages outside an authorized brokerage, operating as a mortgage lender without a licence, using restricted titles and failing to ensure brokerage compliance. FSRA alleges Saini dealt in mortgages for remuneration outside his brokerage and used restricted titles. Infinite Mortgage is alleged to have authorized an individual to deal or trade in mortgages while it knew or reasonably should have known that the person was authorized by another brokerage. Sadik is alleged to have failed to take reasonable steps to ensure Infinite Mortgage complied with requirements under the Mortgage Brokerages, Lenders and Administrators Act, 2006. Emerald Lending is alleged to have carried on business as a mortgage lender without a licence and to have used restricted titles. The proposed penalties are CAD 85,000 for Saini, CAD 25,000 for Infinite Mortgage, CAD 10,000 for Sadik and CAD 35,000 for Emerald Lending. Saini, Infinite Mortgage, Sadik and Emerald Lending have requested hearings before the Financial Services Tribunal on the proposed penalties.