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Financial Services Regulatory Authority of Ontario

IN THE MATTER OF the Mortgage Brokerages, 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 Moninder Khudal (“Khudal”)


ORDER TO IMPOSE ADMINISTRATIVE PENALTIES

Khudal was licensed as a mortgage broker between July 7, 2008, and March 31, 2020 (licence #M08009338). Khudal is the Principal Broker, President, and sole officer of Financial Ties.

On April 20, 2022, 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 two administrative penalties in the total amount of $10,000 on Khudal as follows:

  1. $5,000 for, as principal broker, failing to take reasonable steps to ensure that Financial Ties Ltd., and each broker and agent authorized to deal or trade in mortgages on its behalf, complied with every requirement established under the Act, contrary to subsection 2(1) of O. Reg. 410/07; and

  2. $5,000 for assisting agents of Financial Ties in giving false or deceptive information when carrying out the business of dealing in mortgages in Ontario, contrary to subsection 43(2) of the Act.

The Notice of Proposal was delivered to Khudal’s lawyer on April 20, 2022. A Request for Hearing (Form 1) dated May 3, 2022, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On July 14, 2022, Khudal withdrew the Request for Hearing, and, on July 15, 2022 the Tribunal closed its file in respect of this matter. Therefore, pursuant to section 39(7) of the Act, the Director makes the following order.

ORDER

Administrative penalties in the total amount of $10,000 are hereby imposed on Moninder Khudal, for the reasons set out in the Minutes of Settlement. TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Moninder Khudal with information as to where and how to pay the administrative penalties. Moninder Khudal must pay the administrative penalties no later than thirty (30) days after the Mareva order dated September 17, 2020, is lifted or the litigation proceeding in which the Mareva order was issued is concluded.

If Moninder Khudal 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, July 19, 2022

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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