Agent accused of poaching client, hiding fees
The principal broker of Mortgage Centre has filed a complaint regarding its mortgage agent Mai Anh Tran for receiving funds from a client outside of the brokerage.
The Financial Services Regulatory Authority of Ontario (FSRA) has initiated enforcement action against Tran for alleged misconduct and providing false information.
Tran allegedly received an advanced fee of $6,500 directly from a client in March and August 2021 while trying to arrange refinancing for the client's property, violating rules prohibiting agents from taking fees outside their brokerage.
"The Mortgage Centre was not aware of the March 2021 Payment or the August 2021 Payments," the document stated.
The FSRA also found that Tran provided false or deceptive information in mortgage dealings. She included inaccurate details about the client’s employment and income in an application for a mortgage with EFL, another private lender. Additionally, Tran submitted fabricated employment documents to support the application. The client denied providing this false information to Tran.
Tran's actions led to significant financial and legal issues for the client, which eventually had to secure mortgage financing through another agent, incurring penalties and additional costs in the process.
Furthermore, FSRA alleges Tran misled investigators about her relationship with a private lender, NCCI, and made false statements in her license renewal applications by not disclosing an unsatisfied judgment against her.
Tran claimed that the $1,500 payment received in March 2021 was transferred to NCCI as a lender’s fee, although no such transfer occurred. She also misrepresented her relationship with NCCI as being at arm’s length.
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Moreover, Tran provided false information in her license renewal applications in 2020 and 2021, failing to disclose an unsatisfied judgment against her.
FSRA has proposed $14,000 in penalties against Tran for the alleged violations of receiving fees improperly, providing false information when dealing in mortgages, and giving misleading statements to the regulator.
Tran has requested a hearing before the Financial Services Tribunal regarding the proposed penalties.
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