The Financial Services Regulatory Authority of Ontario (FSRA) has imposed conditions on the mortgage agent licence of John Chehade and the mortgage broker licence of Rhett McClenaghan, and issued administrative penalties totalling CAD 34,000 against Chehade (CAD 12,500), McClenaghan (CAD 4,000) and 2078637 Ontario Inc operating as Forest City Living (CAD 17,500). The action follows a settlement and relates to alleged misconduct involving false or deceptive mortgage documents, facilitating dishonest activity, and unlicensed mortgage lending. FSRA found Chehade contravened the Mortgage Brokerages, Lenders and Administrators Act, 2006 and its regulations by giving false or deceptive documents when dealing in mortgages, allowing himself to be used by a borrower to facilitate dishonest activity, providing false information to FSRA, and causing Forest City Funding Inc to breach suitability-related requirements by failing to take reasonable steps to ensure mortgages presented to borrowers were suitable. McClenaghan was found to have assisted in giving false or deceptive documents and to have allowed himself to be used by a borrower to facilitate dishonest activity. Forest City Living was found to have carried on business as a mortgage lender without being licensed or exempt from the licensing requirement.
Financial Services Regulatory Authority of Ontario 2026-03-26
Financial Services Regulatory Authority of Ontario imposes licence conditions and CAD 34,000 in penalties over false mortgage documentation and unlicensed lending
The Financial Services Regulatory Authority of Ontario imposed conditions on the licences of mortgage agent John Chehade and broker Rhett McClenaghan, issuing penalties totaling CAD 34,000 for alleged misconduct. Chehade was found to have violated the Mortgage Brokerages, Lenders and Administrators Act, 2006, by providing false documents and facilitating dishonest activities. McClenaghan and Forest City Living were also penalized for similar violations, including unlicensed mortgage lending.