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Mortgage Broker Receives Maximum Penalty for Unregistered Activities
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Mortgage Broker Receives Maximum Penalty for Unregistered Activities

BC Financial Services Authority (“BCFSA”) has ordered Styles William Stewart and First Expanse Financial Corp. (“First Expanse”) to pay a joint administrative penalty of $50,000 for professional misconduct for carrying on business as a submortgage broker or mortgage broker without being registered to do so. Additionally, Stewart is required to pay $33,625.82 for partial costs of the investigation and hearing.

The penalty issued to Stewart represents the maximum penalty allowable under the Mortgage Brokers Act (“MBA”).

Stewart was found to have been unregistered between the period of approximately July 13, 2022, to February 3, 2023, the date upon which BCFSA issued a cease and desist order to Stewart and First Expanse, pursuant to section 8(2) of the MBA.

BCFSA’s investigation found that during that time, Stewart carried on business as a submortgage broker in respect to 24 properties, and First Expanse carried on business as a mortgage broker in respect of 23 properties, violating section 8(1.4) of the MBA. During that time, Stewart collected a commission of at least $56,000 in respect of these mortgage transactions.

There were several aggravating factors which lead to Stewart receiving the maximum penalty, including:

  • The length of time the unlicensed conduct took place, and that, during this time, he completed more than 20 transactions.
  • Stewart’s misleading statements to BCFSA when he told investigators he had not completed a transaction through First Expanse in over a year when he had completed one that same day.
  • The amount of money he earned through those transactions, which amounted to at least $56,000.
  • The creation of falsified documents by Stewart in an attempt to demonstrate that he was registered.

“Stewart demonstrated repeated disregard and contempt for the regulatory framework governing the mortgage broker industry by knowingly continuing to act as a submortgage broker without being registered,” said Jon Vandall, BCFSA’s Vice President, Compliance and Enforcement.

“Such disregard puts the public and consumers at risk and warrants the maximum penalty allowable under the regulatory framework to prevent and discourage misconduct of this nature.”

BCFSA will continue protecting the public by investigating and disciplining cases of misconduct to ensure only registered individuals who act in compliance with its regulatory regime provide mortgage services in B.C.

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About BCFSA

BC Financial Services Authority (“BCFSA”) is the province’s regulator for the financial services sector that helps to protect British Columbians during some of the most important financial decisions of their lives. As a Crown agency of the Government of British Columbia, BCFSA oversees credit unions, trust companies, insurance companies, pension plans, mortgage services, real estate services, real estate development marketing, and money services. BCFSA also administers the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”). BCFSA’s mission is to instill confidence in the financial services sector by focusing on the safety and soundness of regulated entities and consumer protection.

Media Contact:
Kate Bilney
Communications Manager, (778) 357-1634, [email protected]
Visit: www.bcfsa.ca