Unregistered Mortgage Broker and Associated Companies Ordered to Pay $33,500 for Unauthorized Operations

BC Financial Services Authority (“BCFSA”) has ordered Charles Funaro, 0643025 B.C. Ltd. (“064”), and CAD Investments Ltd. (“CAD”) to pay a joint administrative penalty of $30,000 for carrying on business as a mortgage broker or submortgage broker without being registered to do so. Additionally, they are required to pay $3,500 for investigation costs.

BCFSA found that from approximately September 26, 2017, to December 3, 2020, Funaro carried on business as a mortgage broker or submortgage broker without being registered under the Mortgage Brokers Act (“MBA”), and carried out one or more of the following activities in respect of 34 mortgage transactions:

• Conducted business activities involving lending money secured in whole or in part by mortgages; and
• During the years of 2018 and 2019, lent money on the security of 10 or more mortgages.

Additionally, BCFSA found that Funaro was the sole owner of 064 and was listed as the director of CAD, and that:

• From approximately November 10, 2017, to November 12, 2020, 064 conducted unregistered mortgage brokerage activities in respect of three mortgage transactions, and carried on a business of lending money secured in whole or in part by mortgages; and
• From approximately March 3, 2021, to June 30, 2021, CAD conducted unregistered mortgage brokerage activities in respect of six mortgage transactions and carried on a business of lending money secured in whole or in part by mortgages.

Funaro initially claimed he was not aware that loaning his own funds constituted unregistered mortgage activities under the MBA, however the agreed statement of facts indicate that Funaro was warned about the potential need for registration in July 2020.

BCFSA will continue protecting the public by investigating and disciplining cases of misconduct to ensure only registered individuals who comply with its regulatory regime provide mortgage services in B.C.

More Information

• Charles Funaro, 0643025 B.C. Ltd., and CAD Investments Ltd. – 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, (778) 357-1634
media@bcfsa.ca
Visit: www.bcfsa.ca