A Brampton mortgage agent will spend the next 12 months behind bars after pleading guilty to fraud over $5,000, and the case has mortgage brokers calling for single licensing.
“Another reason to require mortgage agents and brokers to work full time in the industry and not have multiple conflicting businesses,” one commenter said on MortgageBrokerNews.ca.
Harinarain Mathur – whose LinkedIn profile lists him as a “finance manager” at Century 21 -- was sentenced to serve 12 months in jail after pleading guilty to fraud. His Century 21 profile page, meanwhile, has since been taken.
A Canadian Revenue Agency (CRA) investigation found 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.
There are many mortgage brokers who successfully – and simultaneously run – thriving and ethical real estate practices but this case is another in a long line of cases of dual licensed agents have committed fraud. And some industry players believe professionals should focus on one or the other.
“Multiple business licenses must be stopped. He is having business license of real estate (and) mortgage. Kuldip Panesar Homeland Mortgage Corp. wrote. “He did the fraud in accounting business using the information from mortgage applications; this is clear conflict of interest. Only one business license should be given to one person.”
Still, the biggest issue, according to one reader, is the negative affect these cases have on the mortgage broker industry as a whole.
“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,” Vincent Clarke wrote.