A Richmond Hill brokerage pushed a borrower into a $900,000 mortgage she never asked for
Ontario's financial services regulator has initiated enforcement action against a small, family-run Richmond Hill mortgage brokerage and three of its members.
The Financial Services Regulatory Authority of Ontario (FSRA) is proposing $85,000 in total administrative penalties, the revocation of one broker's licence, and conditions that would permanently bar another from serving as a principal broker anywhere in the province.
FSRA issued a Notice of Proposal on July 13 against K. Banx Mortgages Ltd., its principal broker Fahima Kashani, broker Soheil Kashani — Fahima's husband — and mortgage agent Daniel Kashani, their son.
The action stems from a 2024 transaction that regulators say left a borrower facing a product she never requested, could not afford, and that contained falsified income documentation.
The $900,000 mortgage she didn't want
The borrower, identified in FSRA documents only as HM, approached K. Banx seeking a mortgage of between $150,000 and $200,000 to consolidate debts and provide a financial safety net.
According to the regulator, the brokerage instead presented her with a $900,000, one-year term mortgage at an interest rate of 6.89%, replacing two existing mortgages held with a major financial institution at rates of 6% and 4.79%.
Including fees, FSRA says the Annual Percentage Rate (APR) of the proposed product was 11.78%, with an additional discharge penalty of approximately $17,000. The borrower cancelled directly with the lender shortly after signing, and the mortgage was never funded.
FSRA further alleges the application submitted to the lender contained inflated T4 employment income, altered tax slips, and fictitious rental income of $2,300 per month — none of which the borrower says she reported.
Daniel Kashani is alleged to have submitted the application; Soheil Kashani's role was to verify the documents. Soheil allegedly told the borrower it was "better for her application" to include the rental income, even though it was false, according to FSRA's Notice of Proposal.
The action is the latest in an intensifying period of FSRA enforcement that brokers and regulators alike say reflects a meaningful shift in the regulator's posture.
FSRA has stripped a long-licensed broker of his renewal and shut down his second brokerage after finding that four private mortgages arranged for elderly clients were unsuitable, inadequately disclosed, and supported by inaccurate paperwork.https://t.co/2aimnmZS0D
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 13, 2026
Obstruction, outside payments, and record-keeping failures
The regulator also alleges K. Banx failed to maintain complete and accurate records of the transaction, including T4 documents, handwritten notes, Filogix submissions, and suitability assessments.
Soheil is alleged to have instructed the borrower to send $3,000 directly to another agent — funds not processed through the brokerage or disclosed in any mortgage documentation. He received $1,500 of that amount, according to FSRA.
When the borrower filed a complaint with FSRA on September 4, 2024, Fahima allegedly presented a Contract Termination Agreement designed to resolve any outstanding complaints and instructed the borrower to contact the regulator to say she no longer had a complaint.
Soheil told her collection efforts, which included retaining a collections agency to recover $19,555 in anticipated commissions, would cease if she signed.
FSRA is proposing to revoke Soheil Kashani's mortgage broker licence outright and to amend Fahima Kashani's licence to prohibit her from acting as principal broker of any Ontario brokerage.
Proposed administrative penalties are $20,000 on K. Banx, $20,000 on Fahima, $35,000 on Soheil, and $10,000 on Daniel.
All four parties have requested a hearing before the Financial Services Tribunal, and the allegations against them remain unproven pending that process.
A pattern of falsified documents and suitability failures has been central to a series of FSRA actions against Ontario brokerages in 2026, including a proposed $250,000 penalty package against Trillium Mortgage Services Inc. and three associated parties.
Brokers with questions about their own compliance obligations under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (MBLAA) can consult FSRA's licensing and enforcement guidance directly through the regulator's public portal.
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