Ontario's regulator targets two Brampton brokerages over alleged fraud and consumer harm
Ontario's Financial Services Regulatory Authority (FSRA) is seeking to permanently remove two Brampton-based mortgage brokerages from the province's lending market, alleging consumer harm, deliberate misrepresentation, and years of non-compliance with mandatory reporting requirements.
Proceedings initiated July 24, target 9379231 Canada Inc. operating as DLC RK Mortgages and Platinum Mortgages Inc. in Brampton, Ontario, along with their respective owners: Ruby Dhunna, principal broker of DLC RK Mortgages, and Kanwaljit Dhunna, principal broker of Platinum Mortgages.
FSRA is proposing a $50,000 administrative penalty against Kanwaljit Dhunna and seeking to cancel both broker licences.
Interim suspensions, extended on August 24, remain in force pending a Financial Services Tribunal hearing; both parties have requested a hearing, and all allegations are unproven.
FSRA has proposed enforcement action against K. Banx Mortgages Ltd. and three associated licence holders over allegations tied to a mortgage transaction, suitability concerns, and record-keeping practices. https://t.co/GulBS0ipoB
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 19, 2026
Two consumers, two complaints
The case rests on two consumer complaints received by FSRA between May 2024 and March 2025. The first alleged that Ruby Dhunna, without authorisation, discharged a $135,000 mortgage registered against a Brampton property, causing a private lender to lose the full amount.
FSRA further alleges she administered the mortgage without the required licence and failed to disclose that the borrower was a corporation owned by Kanwaljit Dhunna, a significant conflict of interest.
The conduct mirrors patterns FSRA has targeted in recent Ontario mortgage suitability cases involving undisclosed conflicts.
The second complaint involved an elderly client who obtained a $425,000 refinancing mortgage from Hosper Mortgage Investment Corporation in Ontario.
Kanwaljit Dhunna is alleged to have collected approximately $50,900 in prepaid interest, retained roughly $30,000 of those funds, and misrepresented the client's employment, income and assets to Hosper.
Interest obligations rose by approximately 40% following the refinancing, total fees reached approximately $47,000, including a $21,500 brokerage fee to Platinum Mortgages, and the client was forced to sell their home in October 2025.
Pattern of non-disclosure and regulatory failure
FSRA's investigation revealed a sustained compliance failure running alongside both consumer matters.
Ruby Dhunna and her corporations faced sixteen civil proceedings from 2019 to 2026, with default judgments totalling more than $2.9 million; Kanwaljit Dhunna and his corporations faced approximately eleven proceedings with judgments exceeding $1.1 million.
On every licence renewal application from 2020 to 2025, FSRA alleges, both individuals falsely declared they were not defendants in any civil proceedings, a mandatory obligation under Ontario's Mortgage Brokerages, Lenders and Administrators Act, 2006.
The regulator has separately pursued sweeping licence revocations and financial penalties against Ontario brokerages in comparable compliance failures.
Neither brokerage maintained continuous errors and omissions (E&O) insurance as required under the Act, and multiple Annual Information Returns remain outstanding.
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