Regulators take action against those involved in a multi-year mortgage fraud scheme
The BC Financial Services Authority (BCFSA), the regulatory body overseeing financial services in British Columbia, including mortgage services, real estate, credit unions, insurance, and pension plans, has issued five consent orders following a multi-year investigation into unregistered mortgage broker activity involving Jay Kanth Chaudhary.
The investigation revealed that multiple individuals engaged in professional misconduct by participating in Chaudhary’s unauthorized mortgage brokering scheme. In response, the BCFSA is pursuing disciplinary actions against those involved, including real estate licensees and mortgage brokers who benefited from or facilitated the illicit activities.
Regulatory actions and penalties
Among the 25 individuals investigated, 23 have been charged, including four real estate licensees and one mortgage broker. The recent consent orders resulted in disciplinary measures, including monetary penalties and licence cancellations:
- Afsaneh Zarshenas – Ordered to pay a $50,000 disciplinary penalty plus enforcement expenses and must complete a remedial education course before regaining licensure.
- Molenia Golshani – Licence cancelled; fined $75,000 plus enforcement expenses.
- Homayoun (Sam) Harji Karimloo – Licence cancelled; fined $75,000 plus enforcement expenses.
- Sayna Sadat Mirzadeh – Licence cancelled; must pay enforcement expenses.
- Shane Ballard – Currently unregistered; ineligible for future registration as a mortgage broker or submortgage broker; fined $50,000 plus enforcement expenses.
Ongoing enforcement actions
Several other individuals previously received consent orders or penalties after regulatory hearings, including:
- Real estate licensees: Rashin Rohani (under appeal to the Financial Services Tribunal), Mehdi Parsaeian (aka Mohammad Mehdi Parsaeian), Jin Luo, Afsaneh Zarshenas, Molenia Golshani, Homayoun Karimloo, and Sayna Mirzadeh.
- Mortgage broker registrants: Kambiz Parvisi, Ksenia Ivanova, Jordan Lee Ly, Sophiya Dewshi, Sarbjit Bains, Shane Ballard, and Jay Chaudhary.
In a statement, BCFSA reiterated its commitment to safeguarding consumers by enhancing transparency in regulatory actions. Previously redacted third-party information has now been disclosed under BCFSA’s updated administrative policies.
To assist consumers, BCFSA has released a Consumer Fact Sheet, outlining best practices for verifying mortgage brokers’ credentials. Consumers are urged to work with registered professionals to avoid potential fraud and financial loss.
What are your thoughts on the unregistered mortgage brokering scheme? Share your insights in the comments below.
