Ontario Regulator Fines Unlicensed Broker $75,000 in Major Crackdown

TORONTO, ON – January 12, 2026 – Ontario's financial services regulator has levied $75,000 in administrative penalties against former mortgage broker Yashna Singh, capping a case that reveals a deliberate pattern of unlicensed activity, deception, and defiance of regulatory oversight. The Financial Services Regulatory Authority of Ontario (FSRA) issued the compliance order following a detailed November 25, 2025, decision by the Financial Services Tribunal (FST), which found Singh contravened the province's mortgage laws on nine separate counts.

The case serves as a stark warning about the risks consumers face and highlights a broader enforcement push by FSRA to purge the mortgage industry of fraudulent and unauthorized operators. The Tribunal's findings paint a picture of a professional who continued to operate in the shadows long after her official license was suspended, creating what regulators called a significant risk of public harm.

A Pattern of Deception and Non-Compliance

The disciplinary action against Yashna Singh stems from events that began after her termination for cause from the Mortgage Alliance Company of Canada on August 30, 2022. The termination, citing dishonesty and dealing in mortgages outside the brokerage, triggered an automatic suspension of her license. However, the Tribunal's investigation found that this suspension did little to halt her activities.

According to the FST's decision, Singh engaged in a series of serious contraventions. She was found to have received approximately $14,000 in unauthorized remuneration by arranging multiple mortgages and having fees paid directly to her from law firms, a move the Tribunal described as a "deliberate effort" to be paid outside her authorizing brokerage. This practice circumvents the accountability and tracking mechanisms that licensed brokerages are required to maintain.

Even more concerning was her continued operation after her license became invalid. In December 2022, months after her suspension, Singh brokered a mortgage for a client and collected a fee of $3,750, a direct violation of the law prohibiting unlicensed individuals from dealing in mortgages for remuneration. Throughout this period, she persistently used the restricted professional titles of "Broker" and "Agent" in her email communications and maintained online branding for an entity named "Best Choice Mortgage and Financial Services." This created the false and dangerous impression that she was running a legitimate, licensed brokerage, despite explicit directions from FSRA to cease and desist.

The Tribunal also found that Singh provided false and deceptive information during mortgage transactions, including submitting an application with inaccurate income information for a client. To compound the offenses, she was also found to have provided false or misleading information directly to FSRA during its investigation. The FST concluded that a compliance order was not only justified but "required" to stop her ongoing misconduct and to "deter deceptive or fraudulent conduct in the mortgage sector."

The Unseen Risks for Ontario Homebuyers

While the regulatory action brings a measure of accountability, the case casts a harsh light on the potential dangers facing unsuspecting consumers in the complex mortgage market. When borrowers work with a licensed mortgage professional, they are protected by a robust regulatory framework that includes a code of ethics, mandatory education, errors and omissions insurance, and access to an ombudsman for dispute resolution. Dealing with an unlicensed individual like Singh removes all of these safeguards.

"Unlicensed activity exposes consumers to a host of risks, including fraud, unsuitable advice, and a lack of recourse if things go wrong," noted one legal expert specializing in financial services regulation. "These individuals operate outside the system of checks and balances designed to protect the public."

Singh's actions—creating a seemingly professional business front with "Best Choice Mortgage and Financial Services" while operating without a license—exemplify how easily a consumer can be misled. Borrowers may believe they are in safe hands, unaware that the person arranging one of the largest financial transactions of their lives has no legal authority to do so and is not accountable to any regulatory body. This gap in protection can lead to consumers being locked into unsuitable mortgage products with unfavorable terms or, in worst-case scenarios, becoming victims of outright fraud.

FSRA encourages all consumers to use its online public registry to verify the license status of any mortgage broker, agent, or brokerage before entering into any agreements. This simple step is the most effective defense against the risks posed by unlicensed operators.

FSRA's Broadening Enforcement Mandate

The decisive action against Yashna Singh is not an isolated event. It is a key data point in a clear trend of heightened vigilance and stricter enforcement by FSRA. The regulator has been increasingly active in policing the mortgage sector, signaling a low tolerance for non-compliance and a renewed focus on consumer protection. In recent months, FSRA's public enforcement database has been populated with actions against other individuals and firms for various infractions.

For instance, in April 2024, the regulator took the dramatic step of revoking the licenses of 29 different brokerages for administrative but critical failures, such as neglecting required filings or failing to appoint a principal broker—a necessary condition for legal operation. These actions demonstrate that FSRA is targeting not only overt fraud but also the systemic weaknesses and administrative lapses that can enable misconduct.

This proactive enforcement posture is a response to the inherent challenges of regulating a sprawling and dynamic industry. Unlicensed activity can be difficult to detect, often flourishing through word-of-mouth referrals or slick online marketing that mimics legitimate businesses. By publicizing significant penalties and compliance orders, FSRA aims to create a powerful deterrent effect, warning other potential bad actors of the severe consequences of flouting the rules.

Industry analysts observe that this muscular approach is essential for maintaining the integrity of the financial market. By weeding out non-compliant and unlicensed individuals, the regulator not only protects consumers but also ensures a level playing field for the thousands of licensed professionals who abide by the rules and act in their clients' best interests.