Investigation reveals startling, widespread industry violations
The British Columbia Financial Services Authority (BCFSA) has intensified its enforcement actions, revealing the full extent of Jay Kanth Chaudhary’s unregistered mortgage brokering scheme. The regulator has now publicly linked Chaudhary to 19 completed disciplinary cases after years of referring him anonymously as ‘Individual 1’. Four more investigations remain ongoing, a CBC report noted.
BCFSA director of investigations Raheel Humayun described the scope of Chaudhary’s operations as “staggering”, citing the widespread ethical breaches among licensed professionals who collaborated with him. The regulator’s decision to disclose previously redacted information is part of a broader effort to enhance transparency and deter future misconduct.
According to consent orders, many of Chaudhary’s clients obtained mortgages using tax documents that falsely inflated their income. In one case, a real estate agent secured a mortgage with fraudulent financial statements despite having declared a negative annual income the previous year.
Despite the gravity of the violations, law enforcement has yet to take action. The BCFSA confirmed that it made multiple referrals to the RCMP’s E-Division, but the federal police declined to pursue the case, citing jurisdictional constraints. The Cullen Commission report noted that Chaudhary had faced scrutiny from the Canada Revenue Agency, but he does not appear to have faced any criminal charges.
Disciplinary actions against conspirators
The latest BCFSA rulings have resulted in severe penalties for real estate agents and mortgage brokers who facilitated or benefited from Chaudhary’s illicit activities. They knowingly referred clients to him, assisted in preparing fraudulent documents, and in some cases, used the same methods to obtain mortgages for themselves.
Molenia Golshani, Sayna Sadat Mirzadeh, and Homayoun (Sam) Haji Karimloo, all licensed real estate agents, worked closely with Chaudhary to help unqualified buyers secure mortgages. Investigators found that they submitted applications with doctored income statements, fully aware that the financial information had been altered. Additionally, they personally benefited from Chaudhary’s services by using similar fraudulent tactics to finance their own properties. Their licences have been revoked, and they have been fined tens of thousands of dollars.
Mortgage broker Shane Ballard admitted to facilitating at least 165 fraudulent mortgage applications for Chaudhary, effectively acting as a front to submit altered documents to lenders. Consent orders revealed that Ballard never met the borrowers but processed their applications as if they were legitimate. As a result, he has been permanently banned from the industry and fined $50,000.
Other implicated professionals engaged in similar activities. Some have received fines and suspensions, while others face remedial education requirements. Several are appealing their disciplinary actions.
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