Mortgage Broker Ordered to Pay $35,000 for Failing to Report Misleading Mortgage Applications Submitted on His Behalf

A mortgage broker engaged in unethical practices that compromised the integrity of the mortgage lending process when he allowed inaccurate documentation and misleading information in a mortgage application to be submitted by another individual using his Filogix account password. Filogix is a software platform that connects mortgage brokers and lenders.

In March 2020, Siavash Ahmadi, a registered submortgage broker, met with a prospective mortgage client, but after reviewing their documentation, determined the client would not qualify for a mortgage and declined to submit an application on their behalf. Shortly thereafter, while Ahmadi was travelling internationally, a mortgage application for the client was submitted by Ksenia Ivanova, via Ahmadi’s Filogix account. Ivanova and Ahmadi were in a relationship at the time. Upon returning from his trip, Ahmadi discovered the application had been submitted and approved, and that the application contained information and documentation that was inaccurate. Despite this, Ahmadi took no action to cancel the application or inform the lender of the inaccuracies contained in the application.

BCFSA determined that the inaccurate mortgage application information \was intended to present a more favourable financial picture to the lenders, thereby increasing the likelihood of loan approval. This action compromised the integrity of the lending process and put both the lenders and the borrowers at risk.

Additionally, between January 2020 and January 2021, Ahmadi was unable to fully conduct business due to personal health issues. During this period, Ivanova undertook activities on behalf of Ahmadi, such as handling financial documents related to Ahmadi’s prospective clients. At this time, Ahmadi also accepted financial documentation for clients from third parties, including Ivanova, without meeting with the clients directly for at least eight mortgage applications. Documents received for these applications contained misleading information, including altered income tax statements to lenders and misleading information about borrowers’ incomes.

As a result of Ahmadi’s failure to report the inaccuracies in the mortgage applications, and for his role in accepting financial documents without taking sufficient steps to confirm their accuracy or authenticity, Ahmadi is required to pay an administrative penalty of $35,000, and an additional $3,500 for enforcement expenses.

In BCFSA previously ordered Ivanova’s to pay a $35,000 administrative penalty for her role in submitting misleading and inaccurate mortgage applications.

“BCFSA is committed to ensuring integrity in the mortgage services industry and will not hesitate to take action against those who compromise the public interest,” said Jon Vandall, BCFSA’s Senior Vice President, Compliance and Enforcement. “The substantial administrative penalty of $35,000 reflects the severity of Ahmadi’s actions and serves as a clear message that such misconduct will not be tolerated.”

The maximum available penalty for individual mortgage brokers under the Mortgage Brokers Act (“MBA”) is $50,000.

For more information: 

• Siavash Ahmadi - Consent Order
• Ksenia Ivanova - Related Consent Order
• Report a Concern with BCFSA
• Find a registered mortgage broker

About BCFSA

BC 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.

Media Contact:
Kate Bilney
Communications Manager
Media@bcfsa.ca
Visit: www.bcfsa.ca