BCFSA Uncovers Extensive Web of Unregistered Mortgage Broker Activity

The orders come after a multi-year investigation by BCFSA into the activities of Chaudhary and other individuals who are alleged to have participated in Chaudhary's scheme to facilitate noncompliant mortgage broker activity in British Columbia. This activity resulted in BCFSA issuing Chaudhary with an urgent cease and desist order in 2019.

BCFSA has worked diligently to investigate the complex activities and pursue disciplinary action for those who participated in, benefitted from, and facilitated Chaudhary's activities. Of the more than 25 individuals that were investigated, 23 have been charged. This includes four real estate licensees and one mortgage broker that recently entered into consent orders with disciplinary action, including:

• Afsaneh Zarshenas has been ordered to pay a $50,000 disciplinary penalty, plus enforcement expenses, and, at their own expense, must register for and successfully complete a remedial education course before becoming licensed again.
• Molenia Golshani's licence has been cancelled and has been ordered to pay a $75,000 discipline penalty, plus enforcement expenses.
• Homayoun (Sam) Harji Karimloo's licence has been cancelled and has been ordered to pay a $75,000 discipline penalty, plus enforcement expenses.
• Sayna Sadat Mirzadeh's licence has been cancelled and must pay enforcement expenses.
• Shane Ballard is currently unregistered and is not eligible to become registered as either a mortgage broker or submortgage broker and has been ordered to pay a discipline penalty of $50,000, plus enforcement expenses.

Other individuals involved with Chaudhary's activities that have previously entered into consent orders or received penalties after a hearing include:

Related files - real estate licensees:

• Rashin Rohani - Decision on Sanction (under appeal to the Financial Services Tribunal)
• Mehdi Parsaeian, aka Mohammad Mehdi Parsaeian - Consent Order
• Jin Luo and Jin Luo PREC - Consent Order
• Afsaneh Zarshenas - Consent Order
• Molenia Golshani - Consent Order
• Homayoun Karimloo - Consent Order
• Sayna Mirzadeh - Consent Order

Related files - mortgage broker registrants:

• Kambiz Parvisi - Consent Order
• Ksenia Ivanova - Consent Order
• Jordan Lee Ly - Consent Order
• Sophiya Dewshi - Consent Order
• Sarbjit Bains - Consent Order
• Shane Ballard - Consent Order
• Jay Chaudhary - Urgent Order

In accordance with its updated Administrative Process: Publication of Regulatory Actions, BCFSA has unredacted previously redacted third-party information from its regulatory actions.

BCFSA has developed a Consumer Fact Sheet to help consumers understand the steps they can take to help protect themselves when engaging a mortgage broker.

More information:

• Consumer Fact Sheet: Why You Should Work With a Registered Mortgage Broker
• Fact Sheet: Jay Kanth Chaudhary
• Cease and Desist Order - Jay Kanth Chaudhary
• Report a concern with BCFSA
• Find a registered Mortgage Broker or Real Estate professional

About BCFSA

B.C. Financial Services Authority ("BCFSA”) is the province's regulator for the financial services sector that helps to protect British Columbians during some of the most important financial decisions of their lives. As a Crown agency of the Government of British Columbia, BCFSA oversees credit unions, trust companies, insurance companies, pension plans, mortgage services, real estate services, real estate development marketing, and money services. BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia ("CUDIC”). BCFSA's mission is to instill confidence in the financial services sector by focusing on the safety and soundness of regulated entities and consumer protection.

CONTACT: Candace Jones

BC Financial Services Authority

[email protected]