Unlicensed operator allegedly pressured clients into signing releases blocking regulator complaints
Ontario's financial regulator has issued a public warning against an individual allegedly operating as a mortgage broker without a licence, flagging risks including consumer pressure to sign illegal releases.
The Financial Services Regulatory Authority of Ontario (FSRA) issued a warning June 12 urging consumers not to do business with Sam Kamra, who is not licensed to conduct mortgage brokering in the province. FSRA said Kamra has been facilitating and arranging private mortgages funded through numbered companies 2707551 Ontario Inc. and 2724582 Ontario Inc., among others, while presenting himself as a mortgage broker or expert in Ontario.
The regulator flagged that consumers have reportedly been pressured into signing illegal releases designed to prevent them from approaching regulatory authorities — a development FSRA described as a serious concern.
Risks of using unlicensed brokers
FSRA stressed that consumers who obtain mortgages through unlicensed individuals have fewer legal protections than those who work through properly licensed professionals. Unlicensed individuals may not fully understand mortgage products, the regulator said, and may recommend options that don't suit a consumer's financial situation.
Under Ontario law, all individuals who deal or trade in mortgages must hold a licence issued by FSRA. That licence requires meeting professional standards and completing ongoing education requirements — safeguards that exist to protect consumers and ensure mortgage professionals can recommend suitable products.
FSRA licenses mortgage brokerages, brokers and agents to maintain public confidence in Ontario's financial services sector. Consumers can verify whether a mortgage professional is properly licensed through FSRA's public registry.
What to do if you've been affected
Anyone who believes they may have been a victim of fraud involving Kamra is urged to contact their local police department. Those who have obtained a mortgage arranged by Kamra can also submit a complaint directly to FSRA.
Kamra is reportedly using two email addresses while conducting unlicensed business. FSRA listed both in its warning notice and encouraged anyone with relevant information to come forward.
This warning is among several enforcement actions and notices FSRA has issued in recent months against unlicensed or non-compliant individuals operating in Ontario's mortgage market. The regulator has also pursued administrative penalties and licensing conditions against entities in other sectors of Ontario's financial services industry.
