A former mortgage broker has agreed to a $40,000 fine in connection with an alleged fraud scheme that prompted a complaint to regulators.

In a statement released on Thursday, the Financial Services Regulatory Authority of Ontario (FSRA) wrote that it entered into a settlement with Paramjeet Kaur, who was a licensed broker with Trillium Mortgage Services Inc. until March 31, 2026 when her licence expired.

In interviews with the FSRA, Kaur admitted to knowingly providing false employment and income information to lenders on multiple mortgage applications, including one for a low-income college student on a property in Hamilton, Ont.

The FSRA said it received a complaint from the resident in May 2024 after the resident noticed that the registered mortgage was higher than the amount agreed.

Kaur could not be reached for comment.

The next month, authorities issued a notice and compliance order against Kaur, Trillium Mortgage Services’ principal broker Frank Manzo, as well as a third party identified as Vatsal Pareshkumar Khamar also known as Vic Kumar.

Investigators said Kaur was contacted by Khamar through an ad that she placed on Kijiji.

“Khamar offered to refer individuals to her who needed assistance obtaining mortgages,” the FSRA wrote in a notice issued in April 2026. “Khamar met with the borrowers and obtained documents such as client identification, financial documents, appraisals, and agreements of purchase and sale.”

Regulators allege that Khamar or his assistants forwarded the information to Kaur, who relied on him to verify the borrowers’ identities. 

Khamar has never held a valid brokers’ licence.

Regulators said he referred at least seven groups of borrowers to Kaur and that she spoke with some of them on the telephone or over video conferencing, but never met with any borrowers in person. 

She completed the mortgage applications, arranged for electronic signatures through Khamar, and submitted them to lenders via Trillium, according to the FSRA.

“Kaur did not pay Khamar directly, and believes that he was compensated directly by the borrowers,” regulators added. “Kaur failed to complete any suitability analysis for the borrowers. Despite the Trillium policy and procedures manual stating that file check lists and client risk profile forms were required, none were done for the borrowers.”

The FSRA believes Kaur received $90,000 in commissions as a result of the mortgage dealings, with Trillium receiving $11,000 in commissions.

In July 2024, regulators sent a formal letter demanding Khamar cease and desist his unlicensed activities and issued a public warning notice on its website the next month.

Khamar could not be reached for comment.

Regulators were initially seeking a fine of $85,000 on Kaur, which was reduced to $40,000 upon settlement. 

She is accused her of facilitating dishonesty, fraud, crime or illegal conduct and failing to take reasonable steps to ensure that mortgages she presented to borrowers were suitable for them.

Regulators also accused her boss of failing to take reasonable steps to ensure his brokerage and its agents complied with the Mortgage Brokerages, Lenders and Administrators Act. He faces an individual fine of $25,000 and his brokerage faces a separate $60,000 fine.

In a phone call with CityNews on Friday, Manzo said he was in negotiations with the FSRA on a settlement and declined to provide additional comments.