Compliance Order to Cease and Desist Unlicensed Activity Against Tier 1 Transaction Advisory Services Inc.

REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, in particular sections 2 and 35;

 

AND REGARDING Tier 1 Transaction Advisory Services Inc.

COMPLIANCE ORDER

On October 20, 2016, the Superintendent of Financial Services (the “Superintendent”) issued a Notice of Proposal to, inter alia, impose a compliance order against Tier 1 Transaction to cease and desist unlicensed activity (the “NOP”).

 

On October 20, 2016, the Superintendent also issued an Interim Compliance Order to Cease and Desist Unlicensed Activity against Tier 1 Transaction. The interim compliance order was extended on November 8, 2016.

 

Bhaktraj Singh, a director, officer and sole shareholder of Tier 1 Transaction, requested a hearing before the Financial Services Tribunal on Tier 1 Transaction’s behalf.

 

On November 23, 2017, the Tribunal granted the Superintendent’s motion to amend the NOP and an amended NOP was issued on December 5, 2017.

 

On January 17, 2018, Tier 1 Transaction withdrew its Request for Hearing.

 

Subsection 35(6) of the Act provides that the Superintendent may carry out the proposal to impose a compliance order when no hearing has been requested.

 

The Superintendent issues the following order:

ORDER

IT IS ORDERED THAT Tier 1 Transaction:

 

  1. Immediately cease soliciting persons or entities to borrow or lend money on the security of real property in Ontario, or holding itself out as doing so;
  2. Immediately cease providing information about a prospective borrower to a prospective mortgage lender or holding itself out as doing so, in respect of real property in Ontario;
  3. Immediately cease negotiating or arranging a mortgage in respect of real property in Ontario on behalf of another person or entity, or attempting or holding itself out as doing so;
  4. Immediately cease accepting any fees or funds in connection with the solicitation, negotiation, or arrangement of a mortgage in respect of real property in Ontario;
  5. Immediately cease using a description that might reasonably be expected to lead to the belief that it is a mortgage brokerage in respect of real property in Ontario;
  6. Immediately cease advertising as a mortgage brokerage or as associated with a mortgage brokerage in Ontario; and
  7. Immediately cease making any claims or representations in relation to mortgages that are false or misleading.

TAKE NOTICE THAT pursuant to subsections 48(4) and 49(1) and (2) of the Act, every person who fails to comply with an order made under this Act is guilty of an offence and every individual convicted of an offence under the Act is liable to a fine of not more than $100,000 or imprisonment for a term of not more than a year or both a fine and imprisonment. Every corporation convicted of an offence under the Act is liable to a fine of not more than $200,000.00.

 

Pursuant to subsection 48(5) of the Act, every director or officer of a corporation that commits an offence under this Act who directed, authorized, assented to, acquiesced in or participated in the commission of the offence, or who failed to take reasonable care to prevent the corporation from committing the offence, is guilty of an offence, whether or not the corporation is prosecuted or convicted.

 

Subsection 48(6) of the Act provides that every partner of a partnership and every individual who is a member of the directing body of an entity, other than a person or partnership, who directed, authorized, assented to, acquiesced in or participated in the commission of an act or omission by the partnership or entity which, if committed by a person, would be an offence under the Act, is guilty of an offence.

 

DATED at Toronto, Ontario, January 23, 2018.

 

Brian Mills

Superintendent of Financial Services