Broker guilty of defrauding CRA

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A Brampton mortgage broker has been jailed for fraud, specifically using the personal information of clients to cheat, of all people, the taxman.

In the Ontario Court of Justice, Harinarain Mathur was sentenced to serve 12 months in jail after pleading guilty to fraud charges of theft over $5,000 in January.

A Canadian Revenue Agency (CRA) investigation showed that Mathur, a licensed real estate and mortgage agent who operated HR Accounting and Tax Services, prepared false T4s and filed 292 fraudulent personal income tax returns for the 2010 and 2011 tax periods. 

According to CRA, Mathur used social insurance numbers and other personal information gathered from numerous mortgage applications to file the fake returns. He also filed fraudulent income tax returns with fake T4s and phony rent receipts.

Mathur was also claiming refunds of approximately $1,000 for each of the returns he filed on behalf of unsuspecting taxpayers and used mailboxes he rented to collect the refund cheques for himself, according to court records.

For more information, visit the CRA website at www.cra.gc.ca/convictions.
 
  • WC Broker on 2014-11-27 2:16:59 PM

    Accused? He plead guilty, may wanted to correct the misleading headline.

  • Bob on 2014-11-27 2:38:48 PM

    Wow fraud in Brampton? Shocking....

  • bob on 2014-11-27 2:46:59 PM

    The Perfect Storm : double licensed , where are the regulators ? He may as well have blank cheques for the lenders and CRA ...then such a soft penalty which will only be part served

  • bob on 2014-11-27 2:47:00 PM

    The Perfect Storm : double licensed , where are the regulators ? He may as well have blank cheques for the lenders and CRA ...then such a soft penalty which will only be part served

  • Gregory on 2014-11-27 2:52:34 PM

    Not really, Brampton big deal

  • Mike on 2014-11-27 2:55:02 PM

    Another reason to require Mortgage Agents and Brokers to work full time in the industry and not have multiple conflicting business. BTW is you are correcting the headline, he is an Agent not a "Broker"!

  • Moe on 2014-11-27 3:16:26 PM

    Mike, putting more regulations on mortgage agents ie the rest of us will create more bureaucracy, which will create more forms, which will also lead to more fees for us agents to pay for a new enforcement division of fsco. Be careful what you wish for.

    What this foreigner immigrant did. shouldn't make for more regulation on the rest of us who run a compliant business.

    People should be able to have multiple licenses or one license if they want to.

    And Bob, the regulators financial services
    don't look for this kind of criminal activity.

    The business out there that needs to be regulated is the bookkeeping /tax service industry.

    All people need is to buy turbotax and they can file tax returns for other people.

    No licensing or compliance required

  • Moe on 2014-11-27 3:16:31 PM

    Mike, putting more regulations on mortgage agents ie the rest of us will create more bureaucracy, which will create more forms, which will also lead to more fees for us agents to pay for a new enforcement division of fsco. Be careful what you wish for.

    What this foreigner immigrant did. shouldn't make for more regulation on the rest of us who run a compliant business.

    People should be able to have multiple licenses or one license if they want to.

    And Bob, the regulators financial services
    don't look for this kind of criminal activity.

    The business out there that needs to be regulated is the bookkeeping /tax service industry.

    All people need is to buy turbotax and they can file tax returns for other people.

    No licensing or compliance required

  • Kuldip S Panesar Homeland Mortgage Corp. on 2014-11-27 3:27:26 PM

    Multiple business licenses must be stopped. He is having Business license of Real Estate , Mortgage and Accounting .He did the Fraud in Accounting Business unsung the information from Mortgage Applications. This is clear conflict of interest. Only one Business license should be given to one persons.

  • Moe on 2014-11-27 3:33:56 PM

    Kuldip I don't agree. For previous mentioned reasons. that guy isn't licensed to do tax returns.

    So if the rules were changed like you recommend and he had a mortgage business only. He still can run his tax return business. Having a real estate license as well isn't relevant.

    So your idea wouldn't slow him down one bit.



  • Kuldip S Panesar Homeland Mortgage Corp. on 2014-11-27 3:49:43 PM

    Moe, Accounting Business should also be regulated as other Business . If there is any conflict of interest then business license should not be given. Why this business should be given free hand when other business are regulated ?

  • Mike on 2014-11-27 3:57:59 PM

    Moe: Perhaps the brokerage he works for should do a better job supervising. How often did the Principal Broker visit his office? Did the Principal Broker even know he did Tax Returns. I think these huge brokerages should step up their requirements and supervision.

  • Moe on 2014-11-27 4:03:29 PM

    Mike, Brokerage margins are thin, I think that if you put more regulations and audits on them then that cost will get put onto the agents. It always does. Plus this Joker who is breaking the law could have done it working for a bank or trust company etc etc etc. Supervision is necessary however excessive regulatory processes will do nothing to help the other good clean agents. Just put another hurdle in front of us to jump.

  • Moe on 2014-11-27 4:07:38 PM

    Kuldip,

    I agree that the tax return business needs to be regulated. Anyone can call themselves a tax service office. That we all agree needs a little bit of regulation.

    I think that for anyone who earns a single dollar from other activities should disclose what they are. And then they should declare potential conflicts of interest.

    I do think that no amount of regulation could have stopped this joker from doing what he did. He can have his wife "run" the tax business. When in reality he does it.

  • Mike on 2014-11-27 4:28:04 PM

    Moe: So that is what you tell the client who just had his information used fraudulently "sorry but we don't make enough money to properly supervise our employees". Maybe the margins are so thin because of all the lawyers they have to hire to deal with problem agents.

  • Pam on 2014-11-27 5:17:25 PM

    Where there is a will there is a way, no amount of regulation is going to slow down a criminal, plain and simple.

  • Moe on 2014-11-27 5:47:53 PM

    Mike, the answer is that the agent broke the law even though he knew what they were.

    We all drive cars and sometimes there are drivers among us who speed a little or text and drive etc.

    Is the practical way to stop that behaviour by having a supervisor in each car all the time when anyone goes driving??????

    Noooooo.

    There is an element of enforcement, ie. police officers on patrol and other drivers can call the police about a bad driver. It doesn't stop everyone... there is still an honor system that each driver should follow. However you can't make every driver/agent honorable. And that is unfortunate.

    However that is the way the world works. And it is unfortunate that there are criminals that are police officers, bankers, lawyers, mortgage agents, teachers etc.

  • Moe on 2014-11-27 5:49:27 PM

    lets keep our own noses clean today!!!

  • Vincent Clarke on 2014-11-27 6:23:20 PM

    Re all above point missed sadly, we are loosing market share to the Banks and this is an example of another "nail in the coffin" i.e. clients can TRUST the Banks mobile Mortgage Agents as they are bound by the banks rules and there is never a conflict of interest as "employees".

  • Vincent Clarke on 2014-11-27 6:24:09 PM

    Re all above point missed sadly, we are loosing market share to the Banks and this is an example of another "nail in the coffin" i.e. clients can TRUST the Banks mobile Mortgage Agents as they are bound by the banks rules and there is never a conflict of interest as "employees".

  • Vincent Clarke on 2014-11-27 6:32:59 PM

    Re above email correction

  • Deborah on 2014-11-27 7:24:29 PM

    I'm dual licensed and would never, ever put either of my licenses on the line for anything. I'm proud of what I do and what I've accomplished.
    Don't blame the dual license, if you are dishonest you will find a way to cheat.

  • Mortgage Delivery Guy on 2014-11-27 9:02:06 PM

    Interesting string of comments!
    I agree with Vincent Clarks comment of losing market share to banks.this news does not help the cause instead complicates the work of those who prefer to do things the right way.

  • Mortgage Delivery Guy on 2014-11-27 9:02:09 PM

    Interesting string of comments!
    I agree with Vincent Clarks comment of losing market share to banks.this news does not help the cause instead complicates the work of those who prefer to do things the right way.

  • Angela Wong-Liao - Invis on 2014-11-27 9:11:51 PM

    This is the kind of mortgage agent who gives our industry a bad name. Frankly, I do not believe that a mortgage agent can be a real estate agent and also an accountant who prepare tax returns. Our industry regulators should not allow mortgage agent having other directly related businesses because it will only lead to potential conflict of interest and subsequently fraud. In my opinion, not more regulations from our regulators but stop allowing agents having other directly related businesses.

  • moe on 2014-11-28 8:03:35 AM

    I think that if you get rid of the dual licensed agents you are getting rid of mortgage agents. This is not good for our industry. All mortgage agents bring in business. By getting rid of agents you are increasing banking share of the market. Do you want the bank to get a bigger share of the market?

  • Deborah on 2014-11-28 9:39:48 AM

    Why is this issue about dual licensed mortgage brokers? It's the dishonest person not the license(s).

  • Anne on 2014-11-28 10:07:21 AM

    Regardless of your opinion on dual licensing, that has nothing to do with this case. The guy created false t4's and didn't have to also be a mortgage agent to do that. He's a criminal, plain and simple. People have multiple degrees so why can't they be dual licensed? It doesn't make them more or less likely to break the law. I could stand in a bank all day in front on unlocked safety deposit boxes and would never steal a thing. You can say that allowing someone to be dual licensed will encourage them to steal but unless you are a criminal, that's ridiculous. People have to take responsibility for their own actions.

  • John on 2014-11-28 10:21:13 AM

    Accordingly to FSCO, it looks like he last worked at Centum Instant Mortgage Loans Inc.

  • Ron Butler on 2014-11-28 11:07:09 AM

    I am in agreement with those that point out no matter what regulations are in place and no matter how relentlessly any regulator enforces them: once someone decides to do evil, they will find a way. We can never regulate away bad intentions.

  • Alphonse Negro on 2014-11-28 11:35:36 AM

    CRA is doing its job. Coincidence that culprit was a mtg broker, albeit not a bright one. CRA has software to look for patterns and to raise red flags...One cannot expect to roll the dice and expect to win every time!

  • Lisa on 2014-11-28 3:11:34 PM

    The problem in our industry is that it is too easy to become a mortgage agent.

    I'm so tired of hearing from clients stories of sleazy agents/brokers who are basically robbing and lying to their clients.

    Make it more difficult and more expensive to become an agent/broker so these losers look somewhere else to rip people off and stop tarnishing our industry!!!! Please!!!

  • Mike on 2014-11-28 4:12:02 PM

    Lisa: Agreed but the industry has to be the ones who change. Some brokerages will hire anyone and they give no support or training. Super brokers have little supervision. Obviously have no issues with their agents being real estate agents and tax preparers at the same time. Wander if a certain super broker and major realtor is going through files as we speak. I bet you some lenders are pulling deals and FSCO is thinking of doing an audit. This all costs us money and could be stopped by brokerages cleaning up their act.

  • Tony Gill, Centum XL Mortgages Inc on 2014-12-01 1:00:53 PM

    The subject in question pleaded guilty on January 10, 2014 but he was still allowed to do Mortgage business till August 25, 2014 when his license was terminated. Something is wrong somewhere.

  • Tony Gill, Centum XL Mortgages Inc on 2014-12-01 1:01:37 PM

    The subject in question pleaded guilty on January 10, 2014 but he was still allowed to do Mortgage business till August 25, 2014 when his license was terminated. Something is wrong somewhere.

  • Diane on 2014-12-01 1:14:36 PM

    Agreed with Angela Wong-Liao

  • Diane on 2014-12-01 1:15:24 PM

    Agreed with Angela Wong-Liao

  • Angela Wong-Liao - Invis on 2014-12-01 2:00:14 PM

    I believe FSCO should cease his business practice immediately upon pleading guilty ON JAN 10, 2014 to avoid any further fraud activities from this individual NOT UNTIL AUG 25, 2014. In my opinion, the penalty for fraud is too light, a bigger penalty & longer jail sentence can help to prevent fraud.

  • Alphonse Negro on 2014-12-01 6:24:27 PM

    In the Province of Québec we have the OAICQ which monitors realtors ( agents ) and mortgage brokers and for financial planners we have L'autorité.. I believe that every province should have something very similar to L'autorité monitoring both realtors and fiancial planners. There is no fulling around when it comes to save guarding a clients money may it be investments or realestate. There also has to be tougher regulation to protect condo buyers deposits on new construction where perhaps developers either have matching funds for each dollar left on deposit or they get bonded/insured to cover those deposits in event that a project does not come to term or funds dissapear. Too much reliance on Home Warranty Programs or jurisprudence... One has to ask whether even the Home Warranty Programs are solvent...

  • Sonia on 2014-12-02 9:11:25 AM

    This has so little to do with licencing. Criminal minds cannot be regulated. The penalties and consequences or lack there of....that's where the answers lay.
    Also, the CRA should have more checks and balances in place it would seem....

  • Tommy on 2014-12-03 1:45:28 PM

    This guy is not a broker.

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