BC Regulator Warning Public And Real-Estate Community To Steer Clear Of Chaudhary Who Is Being Investigated For Multiple Violations!

Jay Kanth Chaudhary, who the B.C.’s Registrar of Mortgage Brokers accuses of being involved in hundreds of mortgage deals over the past decade totalling over half a billion dollars in loans and millions in commission fees, was hit with a cease and desist order posted on Thursday for engaging in repeated and ongoing activity “which puts the public and lenders at risk.” The regulator also accuses Chaudhary of breaking the law by submitting information to lenders that included false tax documents, bank statements that inflated the borrowers’ income and savings, and false employment information. The cease and desist acts as a warning to the public, but also puts Chaudhary and any potential associates on notice.

SURREY – Unregistered South Asian mortgage broker who raked in millions in commission for helping people create fake income statements to help them qualify for home mortgages is being investigated for multiple violations

Jay Kanth Chaudhary, who the B.C.’s Registrar of Mortgage Brokers accuses of being involved in hundreds of mortgage deals over the past decade totalling over half a billion dollars in loans and millions in commission fees, was hit with a cease and desist order posted on Thursday for engaging in repeated and ongoing activity “which puts the public and lenders at risk.”

“British Columbians have been using the services of a fake mortgage broker,” said Chris Carter, the Acting Registrar of Mortgage Brokers.

 “Their private and confidential information has been compromised. Their documents may have been altered. Ultimately, they may have been placed in mortgages they otherwise shouldn’t have qualified for,” Carter said.

The investigation spans from 2009 to 2018, the order reads, during which time Chaudhary worked on 875 files, generating nearly $6 million in client and referral fees.

The regulator also accuses Chaudhary of breaking the law by submitting information to lenders that included false tax documents, bank statements that inflated the borrowers’ income and savings, and false employment information.

It is not clear how many of the 875 files contained falsified or misrepresented records. It’s also not clear what number of them would not have been granted a mortgage, reported CTV News.

Carter said Chaudhary had a network of “at least 20” complicit mortgage brokers and real estate licensees he worked with, and the regulator has multiple investigations underway.

The cease and desist acts as a warning to the public, but also puts Chaudhary and any potential associates on notice.

B.C.’s Financial Institutions Commission says Chaudhary can appeal the order to the Financial Services Tribunal.

The Registrar of Mortgage Brokers plans to hold a hearing, and could eventually fine Chaudhary as much as $50,000 plus investigative costs. A violation of the order could double the fines and lead to jail time.

The order shows Chaudhary was registered as a mortgage broker in 2008, and was suspended for 120 days for “conducting business in a manner that was prejudicial to the public interest…by failing to conduct any due diligence…and by knowingly submitting false information to lenders for them to act upon as if that information was genuine.”

The order says Chaudhary did not renew his registration after his suspension.

Chaudhary has not responded to the cease and desist order or to media calls for comment.