Investigation uncovers altered bank statements and fake employment records
The Financial Services Regulatory Authority of Ontario (FSRA) has refused to renew the license of mortgage agent Manpreet Ghai following a series of fraudulent activities.
Ghai, who was licensed as a mortgage agent under the Mortgage Brokerages, Lenders and Administrators Act, 2006, submitted altered and fabricated documents to Manulife Bank of Canada between July 2020 and November 2020. These documents included 13 altered bank account statements and 11 falsified employment and income records to support 10 mortgage applications.
"Manulife advised FSRA that Ghai submitted fraudulent proof of down payment documentation," the FSRA reported.
The altered bank statements showed significantly higher bank balances than what the borrowers actually had, and some included fabricated transactions to make it appear that borrowers had paid off debts and met mortgage conditions.
Additionally, Ghai submitted fabricated employment letters and income statements for several borrowers. These documents falsely represented the borrowers' employment and income status, leading Manulife to fund 10 mortgages totalling over $5.18 million.
Despite Ghai's claims that he was unaware of the falsifications and that the information was provided by others, all 10 mortgage applications listed him as the agent of record. His actions resulted in Manulife paying $47,037.49 in commissions, with Ghai earning more than $18,590 from five transactions.
Read next: Canadian pension funds rethink real estate investments after $1.24trn loss
The FSRA also found that Ghai provided false information in his renewal application submitted on March 29, 2022. He falsely declared that no complaints had been made against him, despite being aware of a complaint from Manulife regarding his misconduct.
In addition to his license revocation, Ghai must pay $18,000 in penalty. The regulator issued these orders as a result of a settlement with Ghai.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
