Ontario regulator cited reckless conduct, unverified claims, and major investor losses
Ontario’s Financial Services Regulatory Authority (FSRA) imposed a combined $230,000 in administrative penalties against former mortgage agents Satyamkumar Trivedi and Sasitharan Somasekarampillai, citing a pattern of reckless conduct, failure to verify information, and facilitating fraud that led to a $624,000 investor loss.
FSRA found that both Trivedi and Somasekarampillai “allowed themselves to be used to facilitate dishonesty, fraud, crime, or illegal conduct,” according to the regulator’s order.
The pair also dealt in mortgages and received commissions outside their licensed brokerages, in direct violation of Ontario’s Mortgage Brokerages, Lenders and Administrators Act, 2006.
Trivedi, whose licence expired in March 2024, was ordered to pay $180,000 in penalties after a settlement with FSRA. Somasekarampillai, whose renewal was refused, was penalized $50,000 after not contesting the regulator’s proposal.
Investor left with $624,000 loss
The case stemmed from a 2023 complaint by an investor who alleged he was approached by Trivedi with a mortgage investment tied to a gas station property. FSRA found that Trivedi, acting as the investor's agent, failed to verify key documents—including an appraisal and borrower identification—which were later found to be falsified.
The victim ultimately lost his entire investment after the borrower defaulted. FSRA’s investigation revealed that neither Trivedi nor Somasekarampillai processed the transaction through their respective brokerages, depriving the investor of regulatory protections. Both admitted to splitting a broker fee outside their brokerages.
Regulatory breaches and repeated warnings
FSRA cited multiple breaches, including Trivedi’s “intentional” concealment of information and provision of false statements during the investigation. Trivedi also acted as a mortgage administrator without a licence and collected broker fees on several transactions not submitted through his brokerage.
Somasekarampillai, meanwhile, admitted to acting as a middleman and collecting commissions without verifying the legitimacy of documents.
FSRA concluded that both agents’ conduct was “reckless” and that they “should not be allowed to derive any economic benefit from their contraventions.”
Broader industry implications
The penalties underscore FSRA’s ongoing crackdown on unlicensed activity and non-compliance within Ontario’s mortgage sector. The regulator has repeatedly warned that dealing outside a licensed brokerage and failing to verify client information exposes investors to significant risk.
The case also highlights the importance of due diligence and transparency, especially as private lending and syndicated mortgage investments remain under scrutiny.
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