Brokerage has already filed for bankruptcy
The Financial Services Regulatory Authority of Ontario (FSRA) announced that it has put forward a proposal for the revocation of the licences of the Toronto-based First Swiss Mortgage Corp. and Reza Nezami-Nia due to violations of the Mortgage Brokerages, Lenders and Administrators Act of 2006.
“This is due to the bankruptcy and financial position of First Swiss, contraventions of requirements under the Act, and provision of false or deceptive information to FSRA and lenders,” the agency said.
“FSRA is proposing to revoke First Swiss' mortgage brokerage licence, First Swiss’ mortgage administrator licence and Nezami-Nia's mortgage broker licence. FSRA has issued an interim order suspending their licences effective March 22, 2023.”
FSRA said that the named parties may request a hearing before the Financial Services Tribunal about this proposal.
Last week, the Ontario Superior Court of Justice appointed KSV Restructuring Inc. as receiver over First Swiss property.
“FSRA brought the application on an urgent basis as a result of serious allegations of wrongdoing against First Swiss, made by various investors in the days leading to the court application,” the agency said.
