FSCO has suspended the mortgage broker license of Dinesh (Dennis) Khanna, and his brokerage Metro Financial Planning, following numerous complaints against the Hamilton-based mortgage broker.
None of the allegations have been tested in hearing.
“Through the subsequent investigation of the complaints, FSCO learned that Mr. Khanna had misled and deceived clients by registering mortgages on their property without their knowledge or consent, registering mortgages without ensuring that the clients understood the mortgage or by registering mortgages for amounts greater than what was authorized by the client,” FSCO wrote in an enforcement order. “The lenders in these cases were often close family relations to Mr. Khanna and when the borrower was unable to maintain their payments, legal proceedings were commenced to enforce the mortgage and the borrowers were forced from their homes.
“In most cases, Mr. Khanna or a close family relation ended up with possession of the clients’ homes and/or title to the properties.”
Along mortgage-related complaints, FSCO also received allegations of inappropriate sexual behaviour.
“A number of the female complainants have alleged that Mr. Khanna made unwanted and inappropriate overtures towards them of a sexual nature,” FSCO wrote. “These overtures were made in the context of Mr. Khanna’s mortgage brokering activity and also support the revocations.”
Those examples are just a sample of what FSCO alleges to be “a pattern of manipulation and exploitation with respect to individuals who are in dire financial situations.”
“Metro Financial, through Mr. Khanna, appears to prey on individuals who have no other option, and eventually takes over their property after they inevitably default on their mortgages,” FSCO wrote.
However, Khanna denies the allegations.
“It’s bull---,” Dennis Khanna, principal broker with Metro Financial Planning, told MortgageBrokerNews.ca. “We have appealed the case and we are going to win the appeal.”
Khanna said no criminal charges have been laid.
“We are going to defeat the evil – the government, FSCO – because they have nothing; we just have to defend it and beat them,” he said. “We have money and good lawyers.”
To access FSCO’s entire enforcement order, and to view the entirety of the allegations, click here
A broker’s license has been suspended following complaints of a sexual nature, among numerous other allegations – allegations he denies.