Interim Cease and Desist Order Against First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar

 

REGARDING the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular section 441

 

AND REGARDING a Proposed Cease and Desist Order against First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar

 

AND REGARDING an Interim Cease and Desist Order against First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar

 

INTERIM CEASE AND DESIST ORDER

and

NOTICE OF PROPOSED CEASE AND DESIST ORDER

 
  

INTERIM CEASE AND DESIST ORDER

 
Section 441 of the Act provides that the Superintendent may give notice in writing to a person that the Superintendent intends to order the person to cease or refrain from doing an act or pursuing a course of conduct; to cease engaging in the business of insurance; or to perform remedial acts. A notice of proposed cease and desist order is set out below.
 
Section 441(4) of the Act provides that if the Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by a delay in the issuance of a permanent order, the Superintendent may make an interim order.
 
In the Superintendent’s opinion, the interests of the public may be prejudiced or adversely affected by any delay for the following reasons:
 
  1. The Superintendent has received evidence that First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar have undertaken or carried on, and continue to undertake or carry on,  insurance business in Ontario;
  2. First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar are advertising and holding themselves on as insurance providers; and maintain an office in Ontario for the transaction of the business of insurance;
  3. None of First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar or any agents or representatives thereof are licensed to undertake or carry on insurance business in Ontario;
  4. These acts are a violation of the licensing scheme in the Act and an Order with immediate effect is appropriate in the circumstances.
In accordance with section 441(4) of the Act, the Superintendent, without prior notice, may make an interim order which will take effect immediately.
 

INTERIM ORDER

 
Effective this date, pursuant to section 441(4) of the Act, the Superintendent orders that First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar and any agents, representatives and successors thereof:
 

A. Immediately cease undertaking or carrying on the business of insurance in the Province of Ontario;

 

B. Immediately cease advertising insurance in any form in Ontario; and

 

C. Immediately cease maintaining or operating in Ontario, either in the name of First Nation Insurance Group,  FNIG Holding Corporation and Vijaykumar Ramkumar, or in the name of any agent, representative or successor, an office for the transaction of the business of insurance either in or out of Ontario.

 
If a hearing is requested pursuant to the Notice of Proposed Cease and Desist Order, the Superintendent may extend the Interim Cease and Desist Order until the hearing before the Financial Services Tribunal is concluded.
 
Section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.
 
Section 447(4) of the Act provides that every director, officer, and chief agent of a corporation who caused, authorized, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000. 
 

NOTICE OF PROPOSED CEASE AND DESIST ORDER

 
The Superintendent of Financial Services ("Superintendent") is of the opinion that First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar have committed unfair or deceptive acts or practices by undertaking insurance or carrying on the business of insurance in the Province of Ontario without a licence as required under the Act and on a fraudulent basis. The particulars are set out in the Report of the Superintendent which will be served upon First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar with this Notice. 
 
Pursuant to section 441(2) of the Act, the Superintendent intends to order First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar and any agents, representatives and successors thereof, to: 
 

A. Cease undertaking or carrying on the business of insurance in the Province of Ontario;

 

B. Cease collecting money or anything else of value from any member of the public, in exchange for assisting in the placement of or placing insurance policies in Ontario of any kind;

 

C. Cease soliciting the sale of insurance in any form in Ontario;

 

D. Cease advertising insurance in any form in Ontario; and

 

E. Cease maintaining or operating in Ontario, either in the name of First Nation Insurance Group, FNIG Holding Corporation and Vijaykumar Ramkumar, or in the name of any agent, representative or successor, an office for the transaction of the business of insurance either in or out of Ontario.

 
WITHIN 15 DAYS after receiving this notice, the persons named in this notice may request in writing that the Financial Services Tribunal hold a hearing before the Superintendent takes any action described in this notice.
 
IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a permanent order in accordance with this notice, which shall take effect on the date set out in the order.
 
Any request for a hearing should be directed to:
 
Financial Services Tribunal
5160 Yonge Street
Toronto, Ontario M2N 6L9
Fax No.: (416) 226-7750
 
Attention: Registrar
 
If a hearing is requested, section 441(8) of the Act provides that if the Financial Services Tribunal is of the opinion that a Cease and Desist Order should be made, the Tribunal may make an order which shall take effect on the date set out in the Order.
 
At the hearing, your good character, propriety of conduct or competence may be in issue.
 
The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure of the Financial Services Tribunal under the authority of the Statutory Powers Procedure Act, R.S.O. 1990, Chapter S.22.  The Rules of Practice and Procedure are available at the website of the Tribunal: http://www.fstontario.ca.  Alternatively, a copy can be obtained by telephoning the Registrar of the Financial Services Tribunal at 416- 590-7294, or toll free at 1-800-668-0128 ext. 7294.
 
You may be furnished with further or other particulars in respect of any matter herein or in respect of any other matter, including further grounds to impose a Cease and Desist Order.
 
 
ISSUED AT the City of Toronto, this 14 day of October, 2011.
 
 
 
Philip Howell
Superintendent of Financial Services
 
TO:              
 
First Nation Insurance Group and FNIG Holding Corporation            
4544 Sheppard Avenue East, Suite 211
Toronto, Ontario
M1S 1V2
 
Attention: Mr. Vijaykumar Ramkumar
 
AND TO:      
 
Mr. Vijaykumar Ramkumar
199 Morningview Trail
Scarborough, Ontario
M1B 1V2
 
AND TO:      
 
Larissa Easson
Financial Services Commission of Ontario
Legal Services Branch
5160 Yonge Street, Suite 1700
Toronto ON  M2N 6L9
Tel: 416-226-7842
Fax: 416-590-7556