Mortgage broker suspended, alleged to have preyed on desperate clients
Province, police allege Hamilton mortgage broker broke financial law and sexually assaulted clients
A Hamilton mortgage broker, Dennis Khanna, has had his licence suspended amid allegations he carried out a "pattern of manipulation and exploitation" of his clients through his Metro Financial Planning Limited business.
The Financial Services Commission of Ontario has invoked an interim suspension to shut down his business on King Street West.
The 60-year-old broker was also arrested and charged with sexual assault by Hamilton Police last month.
Citing "numerous complaints" since May 2014, the provincial regulator suspended the licence of Metro Financial Planning Limited as well as the personal license of the mortgage broker in December, and recommended the license be revoked.
The regulator's order to suspend the licenses details five scenarios, alleging that the broker took out mortgages in already financially distressed clients' names without their knowledge, attempted to "wine and dine" female clients and one client's 19-year-old daughter, and when some borrowers couldn't make their payments, the homes or titles were transferred into the names of his nephew and his wife.
Khanna filed an appeal for a hearing on the proposed revocation on Dec. 30, but his license remains suspended in the meantime. Calls for comment to the Metro Financial office Wednesday were not returned.
'Litany of contraventions'
After the province sent a letter to the broker in 2014 outlining some breaches of law in his files, a check in 2015 revealed more than 300 more times the brokerage broke rules and laws, according to the order.
The broker's actions showed a "pattern of manipulation and exploitation with respect to individuals who are in dire financial situations," the regulator said. The broker and company "appears to prey on individuals who have no other option, and eventually takes over their property after they inevitably default on their mortgages."
The regulator alleges, in part, that the broker took mortgages out on clients' properties without their knowledge and took out mortgages for amounts that were higher than what the client had authorized. When the borrowers couldn't pay, the province says the broker and members of his family wound up in possession of the homes.
The order states the regulator also found "a litany of contraventions" of financial law of a "pervasive and serious nature" in the brokerage's books for 2014 and 2015, with no evidence the company tried to fix the problems.
The broker and company 'appears to prey on individuals who have no other option.'- Financial Services Commission of Ontario
On top of all of that, female clients said the broker had made "unwanted and inappropriate overtures towards them of a sexual nature," says the order.
At least one of the women took her complaint to the Hamilton Police last fall, who arrested and charged the broker on Dec. 16.
Hamilton Police say they believe there may be more victims. The province cites "a number" of female clients who complained of the abuse. Police ask anyone with more information to call Crimestoppers or Det. Scott Hamilton at (905) 546-3853.