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.
IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, as amended (the “Act”), in particular sections 18,19 and 21;
AND IN THE MATTER OF Dinesh Khanna also known as Dinish Khanna and Dennis Khanna.
INTERIM ORDER SUSPENDING LICENCE
TO: Dinesh Khanna also known as Dinish Khanna and Dennis Khanna
Subsection 19(1) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (the “Act”) provides that the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”) may, by order, revoke a licence in certain specified circumstances.
Section 21 of the Act provides that if the Chief Executive Officer proposes to revoke a licence without the licensee’s consent, the Chief Executive Officer shall give written notice of the proposal to the licensee, including the reasons for the proposal.
Subsection 19(3) of the Act provides that, if in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence.
INTERIM ORDER SUSPENDING LICENCE
IT IS ORDERED THAT pursuant to section 19(3) of the Act, the mortgage agent licence issued to Dinesh Khanna also known as Dinish Khanna and Dennis Khanna (“Khanna”) (licence number M21001272) is suspended for the reasons outlined below. During the suspension, Khanna is not authorized to deal or trade in mortgages in Ontario.
TAKE NOTICE THAT this Interim Order takes effect immediately and will remain in effect until the expiry of the period for requesting a hearing in respect of a Notice of Proposal to Revoke License (15 days after the Notice is given, or deemed to have been delivered).
AND 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 the 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.
Pursuant to subsection 48(5) of the Act, every director or officer of a corporation that commits an offence under the 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) 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 actor omission by the partnership or entity which, if committed by a person, would be an offence under the Act, is guilty of an offence.
REASONS FOR ORDER
- Khanna was licensed as a mortgage broker under the Act (licence # M08000505) from July 1, 2008 until December 22, 2015.
- On December 22, 2015, the Superintendent of Financial Services (the “Superintendent”) of the Financial Services Commission of Ontario (the “FSCO”) issued an Interim Order Suspending Licence and a Notice of Proposal to Revoke Licence against Khanna based on serious allegations of professional misconduct.
- On May 8, 2017, after a 9-day hearing, the Tribunal ordered that the Superintendent carry out the proposal to refuse Khanna’s mortgage broker license application. The Tribunal found that Khanna engaged in widespread professional misconduct including fraudulent and predatory mortgage administration activities, which resulted in findings that he was not suitable to be licensed under the Act.
- On May 9, 2017, the Superintendent issued an order to refuse to renew Khanna’s broker licence.
- On March 1, 2021, Khanna submitted an application under the Act. The application was made under a name that is not Khanna’s legal name, indicated that he had never been licensed in Ontario and contained other false and misleading information. As a result, the Financial Services Regulatory Authority of Ontario inadvertently issued a mortgage agent licence (licence # M21001272) to Khanna.
- The specific facts regarding Khanna’s 2021 application are set out in the Notice of Proposal to Revoke Licence.
- As Khanna had been previously licensed, section 4(b) of Ontario Regulation 409/07 prohibits him from applying for a mortgage agent licence unless he “satisfies the Chief Executive Officer that new or other evidence is available or that material circumstances have changed”. Due to Khanna’s conduct, including the provision of a false name and other information, he has not complied with this requirement for an assessment of his current suitability for licensing. Khanna’s conduct in obtaining his current license provides reasonable grounds for the belief that he has demonstrated an unwillingness to operate in the mortgage industry in accordance with the law or with integrity and honesty and remains unsuitable for licensing.
- Subsection 19(3) of the Act provides that if, in the Chief Executive Officer’s opinion, the interests of the public may be adversely affected by any delay in the revocation of a licence as a result of the steps required by section 21, the Chief Executive Officer may, without notice, make an interim order suspending the licence
- The Head, Licensing and Risk Assessment, Market Conduct, by delegated authority from the Chief Executive Officer, is of the opinion that the interests of the public may be adversely affected by any delay in making an order to revoke Khanna’s licence and therefore, the issuance of an interim suspension is necessary.
- Khanna has demonstrated a propensity for deceit and poses an imminent risk to his clients and the public more generally. Khanna has not demonstrated that there has been a material change in circumstances from his previous misconduct. Given the nature of Khanna’s past fraudulent conduct there are no lesser alternative measures which will adequately protect the public.
- Given the serious nature of the conduct which resulted in Khanna’s licence refusal and Khanna’s deceit in obtaining his new mortgage agent licence, there is a significant risk of public harm if Khanna continues to offer mortgage services. Accordingly, the criteria for issuance of an interim suspension is satisfied.
DATED at Toronto, Ontario, June 11, 2021.
Original signed by
Head, Licensing and Risk Assessment, Market Conduct
By delegated authority from the Chief Executive Officer of the
Financial Services Regulatory Authority of Ontario
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