Disclaimer
An order that is made regarding a licence holder reflects a situation at a particular point in time. The status of a licence holder can change. Readers should check the current status of a person’s or entity’s licence on the Licensing Link section of FSRA’s website. Readers may also wish to contact the person or entity directly to get additional information or clarification about the events that resulted in the order.

 

Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Mortgage Brokerage, Lenders and Administrators Act, 2006,
S.O. 2006, c. 29, as amended (the “Act”), in particular sections 38 and 39;

AND IN THE MATTER OF Sukhdippal Singh Matharu (“Matharu”).


ORDER IMPOSING ADMINISTRATIVE PENALTIES

Matharu was initially licensed as a mortgage agent on July 1, 2008 under the Act. He became licensed as a mortgage broker on May 13, 2009 (licence # M08003413). His licence expired on May 31, 2020.

On August 12, 2020, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to impose 14 administrative penalties in the total amount of $82,500 on Matharu as follows:

  1. $10,000 each for five separate contraventions ($50,000 in total) for providing false and deceptive information with regard to each of five complainants, contrary to section 43(2) of the Act;

  2. For causing 2136945 Ontario Inc., operating as Popular Mortgages, (“brokerage”) to contravene the Act and Regulations contrary to section 3 of Ontario Regulation 187/08, administrative penalties in the amounts of:

    1. $2,500 for causing the brokerage to contravene section 37 of Ontario Regulation 188/08 for taking advance payment when not permitted;

    2. $7,500 for causing the brokerage to contravene sections 39 and 49 through 53 of Ontario Regulation 188/08 for failing to comply with provisions relating to deemed trust funds; and

    3. $7,500 for causing the brokerage to contravene section 46 of Ontario Regulation 188/08 for failing to maintain records as required;

  3. $2,500 each for five separate contraventions ($12,500 in total) for accepting funds outside the brokerage contrary to section 4 of Ontario Regulation 187/08; and

  4. $2,500 for failing to provide information to the Chief Executive Officer contrary to section 29(1) of the Act.

A Request for Hearing (Form 1), dated September 11, 2020, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On October 18, 2021, the Tribunal, in its Reasons for Decision, dismissed Matharu’s Request for Hearing for taking no step in the proceeding for an undue period and providing no notice or reasonable cause for failure to take those steps. The Tribunal directed the Chief Executive Officer to carry out the Notice of Proposal. Therefore, pursuant to section 39(6) of the Act and by delegated authority from the Chief Executive Officer, the Director makes the following order.

ORDER

Fourteen (14) administrative penalties in the total amount of $82,500 are hereby imposed on Sukhdippal Singh Matharu, for the reasons set out in the Notice of Proposal.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Sukhdippal Singh Matharu, with information as to where and how to pay the administrative penalties. Sukhdippal Singh Matharu must pay the administrative penalties no later than thirty (30) days after the date of the invoice.

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

DATED at Toronto, Ontario, October 26, 2021

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous désirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.