REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the “Act”), in particular sections 7, 8, 10, 19, 21 and 39,

AND REGARDING Ontario Regulations 193/08, 408/07, 409/07, 410/07 and 411/07

AND REGARDING Centum Royal Mortgage Investments Inc. (“Centum Royal”), Royal Capital Finance Ltd. (“Royal Capital”), and Suresh Lala (“Lala”)

ORDER TO REVOKE LICENCES AND IMPOSE ADMINISTRATIVE MONETARY PENALTIES

On December 5, 2013, the Superintendent of Financial Services (“Superintendent”) issued a Notice of Proposal to Revoke Licences and to Impose Administrative Monetary Penalties (the “NOP”) on Centum Royal Mortgage Investments Inc. (“Centum Royal”), Royal Capital Finance Ltd. (“Royal Capital”) and Suresh Lala (“Lala”). The NOP was sent on December 10, 2013. Centum Royal, Royal Capital and Lala had until January 2, 2014 to request a hearing before the Financial Services Tribunal (“Tribunal”) in accordance with the Act.

The Registrar of the Tribunal has confirmed that no request for hearing has been received from Centum Royal, Royal Capital and Lala or anyone on their behalf in respect of the NOP.

Section 21(7) of the Act provides that the Superintendent may carry out the proposal to revoke a licence when no hearing has been requested.

Section 39(7) of the Act provides that the Superintendent may carry out the proposal to impose an administrative monetary penalty when no hearing has been requested.

The Superintendent is satisfied that Royal Capital contravened the Act by failing to comply with the following requirements:

1. to pay the administrative penalty in the amount of $1,000.00 that was imposed on November 23, 2012 on account of failure to file an A.I.R. for fiscal 2011, as required by section 48(4) of the Act;



2. to file an A.I.R., audited financial statements and an auditor’s report for fiscal 2012 as required by section 2 of Ontario Regulation 193/08;



3. to assist the Superintendent’s delegate as required under section 30(6) of the Act by answering questions regarding rectification of its failure to pay the fee for renewal of its mortgage administrator licence from April 1, 2012 to March 31, 2014,;



4. to provide assistance requested by the Superintendent’s designate as required under section 30(6) of the Act to contact the designate to arrange an examination of its books and records.

The Superintendent is satisfied that Centum Royal contravened the Act by failing to comply with the following requirements:

5. to pay the administrative penalty in the amount of $1,000.00 that was imposed on November 23, 2012 on account of failure to file an A.I.R. for fiscal 2011, as required by section 48(4) of the Act;



6. to file an A.I.R. for fiscal 2012 as required by section 2 of Ontario Regulation 193/08;



7. to assist the Superintendent’s delegate as required under section 30(6) of the Act by answering questions regarding rectification of its failure to comply with the requirement to file an A.I.R. for fiscal 2012,.

The Superintendent is satisfied that Suresh Lala contravened the Act by failing to comply with the requirement under section 2(1) of Ontario Regulation 410/07 to take reasonable steps to ensure that the brokerage complied with following requirements under the Act:

8. the requirement established under section 2 of Ontario Regulation 193/08 to file an A.I.R. for fiscal 2012;



9. the requirement established under section 30(6) of the Act to assist the Superintendent’s designate by answering questions regarding rectification of the failure of the brokerage to comply with the requirement to file an A.I.R. for 2012;



10. the requirement under section 48(4) to pay the administrative penalty of $1,000.00 imposed on the brokerage on November 23, 2012 for its failure to file an A.I.R. for fiscal 2011.

ORDER

The mortgage brokerage licence of Centum Royal Mortgage Investments Inc. is revoked.

The mortgage administrator licence of Royal Capital Finance Ltd. is revoked.

The mortgage broker licence of Suresh Lala is revoked.

Administrative monetary penalties of $1,000 and $1,500 x 2 are imposed on Centum Royal Mortgage Investments Inc.

Administrative monetary penalties of $1,000, $2,500, and $1,500 x 3 are imposed on Royal Capital Finance Ltd.

Administrative monetary penalties of $1,000 and $1,500 x 2 are imposed on Suresh Lala as Principal Broker of mortgage brokerage Centum Royal.

TAKE NOTICE THAT Centum Royal, Royal Capital and Lala will be receiving shortly an invoice from Ontario Shared Services, a part of the Ministry of Government Services, with information as to where and how to make payment. Each must pay the administrative monetary penalties no later than 30 days after the date of the invoice.

If anyone fails to pay the administrative monetary penalties in accordance with the terms of this Order, the Superintendent may file the Order with the Superior Court of Justice and this Order may be enforced as if it were an order of the court. An administrative monetary penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario this 3rd day of March, 2014.

Original Signed By

Philip Howell
Superintendent of Financial Services

© Queen's Printer for Ontario, 2014