Superintendent of surintendant des Financial services Services financiers ~._,

Ontario

REGARDING the Mortgage Brokerage s, Lenders and Administrators Act, 2006 , S.O. 2006, c.29 (the "Act"), in particular sections g, 19 and 21.

AND REGARDING Renato Fellin

ORDER REVOKING MORTGAGE AGENT LICENCE

On February 5, 2010, the Superintendent ot Financial Services ("Superintendent") issued a Notice ot Proposal to Revoke Licence in respect of Renato Fellin.

Renato Fellin had until February 26, 2010, after service of the Notice, to request a hearing before the Financial Services Tribunal ("Tribunal") in accordance with the Act.

The Registrar of the Tribunal has confirmed that no request for a hearing has been received from Renato Fellin, or anyone on his behalf, in respect of the proposal to revoke.

Section 21 (7) of the Act provides that the Superintendent may carry out the proposal to revoke a licence when no hearing has been requested.

ORDER

The mortgage agent licence of Renato Fellin is revoked.

DATED at Toronto, Ontario, March ~- , 2010.

GraWnt'Swanson Executive Director, Licensing & Market Conduct Division by Delegated Authority from:

Philip Howell Superintendent of Financial Services

Si vous desirez recevoir cet avis/ordre en francais , veuillez addresser votre demande dans un delai de 15 jours a: Adjointe, audiences, Greffe, Commission des services financiers de l'Ontario, 5160 rue Yonge, boite 85, Toronto ON M2N 6L9

· . Superintendent of surintendant des Financial services Services financiers

REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29 (the "Act"), in particular sections 9, 14, 19, and 21

AND REGARDING Renato Fellin

INTERIM ORDER TO SUSPEND LICENCE AND NOTICE OF PROPOSAL TO REVOKE LICENCE

Renato Fellin was issued a mortgage agent license under the Act on June 27, 2008.

INTERIM ORDER TO SUSPEND LICENCE

Section 19(1) ot the Act provides that the Superintendent of Financial Services ("Superintendent") may, in appropriate circumstances, revoke a mortgage agent licence. Section 21 of the Act provides that where the Superintendent proposes to revoke a licence, the Superintendent shall give written notice of the proposal to the mortgage agent, including reasons for the proposal. A notice of proposal to revoke Mr. Fellin's licence is set out below.

Section 19(3) of the Act provides that if in the Superintendent's opinion the interests of the public may be adversely affected by any delay in the revocation of a licence as result of the steps required by section 21, the Superintendent may, without notice, make an interim order suspending the licence and may do so before or after giving the notice required by section 21 .

In the Superintendent's opinion, the interests of the public may be adversely affected by any delay in the revocation of Mr. Fellin's licence for the following reasons:

1. A mortgage agent 's license authorizes the licencee to deal in mortgages in Ontario or trade in mortgages in Ontario on behalf of, and under the supervision of, a specified brokerage.

2. Dealing in mortgages involves, among other things, soliciting another person to borrow or lend money on the security of real estate, providing information about a prospective borrower to a prospective lender, and negotiating or arranging a mortgage on behalf of another , or attempting to do so.

3. Trading in mortgages involves, among other things, soliciting another person to buy, sell or exchange mortgages, or buying, selling or exchanging mortgages on behalf of oneself or another.

Si \l OUS desirez recevoi r cet avis en francais. veuille z addresser vcrre demande dans un delai de 15 jours a:Adjomte, audiences. Greffe. Co mmission des services financiers de t'Onrano. 5160 rue Yonge. bolte 85. Toronto ON M2N 6L9

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4. By law no person can engage in such activities unless that person is authorized to do so under the Act.

5. Licenses under the Act are granted by the Superintendent only to those who are qualified under the Act and regulations.

6. On June 21. 2008, Mr. Fellin submitted an electronic application for a licence as mortgage agent. working for Zidner Real Estate Limited. His application was successful and Mr. Fellin was granted an agent's licence. Although his licence initially allowed him to act as a mortgage agent for Zidner Real Estate Limited, he was later transferred to Mortgage Alliance Company of Canada Inc.

7. In his application , Mr. Fellin indicated that he qualified for a licence on the basis that he had been authorised to deal in mortgages on behalf of a registered mortgage broker for at least 24 of the previous 36 months.

8. Subsequent inquiries by the Financial Services Commission of Ontario ("FSCO") revealed that in the previous 36 months, Mr. Fellin had been so authorised only from April 1, 2008, to the date of the application. a period of less than 3 months.

9. As lon9 as Mr. Fellin holds a licence. he continues to be authorized to deal or trade in mortgages with the public. However. he does not qualify for a licence. he provided FSCO with false information indicatin9 that he did qualify, and he was granted a licence based on that false information.

10. Also, in his application. Mr. Fellin falsely answered "No" to the following question:

Have you ever been refused registration or a licence under any legislation which required registration or licensing to deal with the public in any capacity...or have you held such a licence and been the subject of a disciplinary proceeding that resulted in a penalty being imposed...?

11 . FSCO later learned that Mr. Fellin had been a member of the Law Society of Upper Canada from February 6. 1996. until April 26. 2006, when he was immediately disbarred after a hearing in which a Law Society Hearing Panel concluded that he had engaged in serious professional misconduct and was ungovernable.

12. Much of the activity that the Law Society concluded warranted immediate disbarment involved mortgage transactions.

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13. Among other things, the Law Society found that Mr. Fellin:

accepted money from a client to invest in a mortgage and provided the client with bogus mortgage documentation,

later accepted additional money from the same client and provided additional bogus mortgage documentation,

caused the client and client's spouse the loss of their life savings, over $300,000,

misappropriated, mishandled and misapplied trust money held on behalf of several clients.

14. Accordingly, the Superintendent is of the opinion that the publlc is at risk and a delay in the revocation of Mr. Fellin's licence may adversely affect the public interest.

ORDER

It is ordered that Renata Fellin's licence be immediately suspended. pursuant to section 19(3) of the Act.

During the suspension Renate Fellin is not authorized to carry on the business of dea ling in mortgages in Ontario or in the business of trading on mortgages in Ontario, to deal in mortgages in Ontario or trade in mortgages in Ontario.

The Interim Order takes effect immediately and will remain in effect until the expiry of the period for requesting a hearing about the Superintendent's Notice of Proposal. If Mr. Fellin requests a hearing before the Tribunal, the Superintendent may extend the interim order until the proposal is finally determined.

Pursuant to sections 48(4) and 49(1 ) of the Act, every person who fails to comply with an order made under this Act is guilty of an offence and every individual convicted of an offence under the Act is liable to a fine of not more than $100,000 or imprisonment for a term of not more than a year or both a fine and imprisonment.

NOTICE OF PROPOSAL TO REVOKE LICENCE

TAKE NOTICE THAT pursuant to section 21 of the Act ; the Superintendent is proposing to revoke your mortgage agent licence. The Superintendent has grounds to believe that you are not suitable to be licenced as a mortgage agent because your past conduct affords

Si vous desirez recevoir eel avis en francais. veuillez addresser vOITe dcmande dans un detel de 15jours a:Adjoinlc. audience s, Oreffe. Commiss ion des services financiers de "Ontario, S160 rue Yonge. boite 85, Toronto ON M2N 6L9

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reasonable grounds for belief that you will not deal or trade in mortgages in accordance with the law and with integrity and honesty, and you made a false statements or provided false information to the Superintendent with respect to your application for a licence. The reasons for the proposal to revoke the licence will be served with this Notice.

AND TAKE NOTICE THAT section 21(3) of the Act provides that you may request a hearing before the Financial Services Tribunal ("Tribunal") in respect of this Notice within 15 days after this Notice is rece ived, or deemed to have been received.

The request for a hearing shall be in writing (Fonm 1, Request for Hearing, sent along with this Notice) and shall be mailed or delivered:

TO: Financial Services Tribunal 5160 Yonge Street, Box 85 Toronto,ON M2N 6L9

Attention: Registrar Fax: 416.226.7750

AND TO: Superintendent of Financial Services Senior Manager, Licensing Licensing and Marketing Conduct Division 5160 Yonge Street, Box 85 Toronto ON M2N 6L9

If a hearing is not requested or no request is made in accordance with section 21(3), section 21(7) of the Act provides that the Superintendent may carry out the proposal to revoke your licence.

If a hearing is requested, section 21 (4) of the Act provides that the Tribunal may, by order, direct the Superintendent to carry out the proposal, with or without changes, or substitute its opinion for that of the Superintendent and the Tribunal may impose such conditions as it considers appropriate in the circumstances.

At the hearing, your good character, propriety of conduct or competence will be in issue.

Si \iOUS des trez recevoir eel avis en francais, veuille z addresser votre demande dans un dela l de 15joursa: Adjumte, audiences, Greffe, Commission des services financiers de l'Ontano. 5160 rue Ycnge. bolte 85. Toronto ON M2N 6L9

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The hearing before the Tribunal will proceed in accordance with the Rules of Practice and Procedure of the Financial Services Tribunal made under the authority of the Statutory Powers Procedure Act, R.S.O. 1990 , c. S. 22. The Rules of Practice and Procedure are available at the website of the Tribunal: www.fstontario.ca. Alternatively, a copy can be obtained by telephon ing the Registrar of the Financial Services Tribunal at 416 .590 .7294 , or toll free at 1.800 .668 .0128 ext. 7294 .

DATED at Toronto , Ontario, hI? b , 2010.

Philip 110we Superintendent of Financial Services

Si vous desirez recevoir cet avis en francais, veuillez addresser votre demande dans un dela i de 15jours a:Adjointe, audiences, Greffe, Commission des services financi ers de l'Ontario, 5 160 rue Yonge, boite 85, Toronto ON M2N 6L9

REGARDING the Mortgage Brokerages, Lenders and Administrators Act, 2006 , S.O. 2006, c.29 (the "Act"), in particular sections 9, 14, 19, and 21

AND REGARDING Renato Fellin

REASONS FOR PROPOSAL TO REVOKE LICENCE

A. Past Conduct

1. Mr. Renato Fellin became a member of the Law Society of Upper Canada on February 6, 1996, and was thereby entitled to practice as a barrister and solicitor in Ontario.

2. Mr. Fellin was disbarred by the Law Society on April 26, 2006, after a hearing by a Law Society Hearing Panel.

3. The panel considered an allegation that Mr. Fellin had engaged in professional misconduct detailed in 22 paragraphs of particulars .

4. In Reason for Decision dated September 28. 2006, the panel found "beyond any doubt" that Mr. Fellin, among other thin9s:

accepted money from A.P, to invest in a mortgage and provided AP. with bogus mortgage documentation,

later accepted additional money from A.P. and provided AP. with additional bogus mortgage documentation,

caused AP. and A.P:s spouse the loss of their life savings, over $300,000,

misappropriated, mishandled and misapplied trust money held on behall of several clients,

failed to account to a client for the proceeds of sale of a property ,

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made a false statement on a trust ledger.

misled a fellow solicitor and the Law Society,

failed to produce books and records to the Law Society,

breached a Law Society order suspending his rights as a member by continuing to practice law.

5. The Hearing Panel concluded that Mr. Fellin's conduct amounted to professional misconduct and described it as "appalling" and "egregious". The Panel stated that Mr. Fellin had disgraced himself and the legal profession and was ungovernable.

6. The Panel decided to disbar Mr. Fellin immediately and noted •...the serious ongoing danger to the public from the solicitor, as the evidence before us demonstrates that he is capable of enormous misconduct. "

7. In detenn ining whether an individual is suitable to be licensed as a mortgage agent, the Superintendent is required to have regard to whether an individual's past conduct affords reasonable grounds for belief that he or she will not deal or trade in mortgages in accordance with the law and with integrity and honesty (s. 10 of Ontario Regulation 409/07, made under the Act.

8. The fact that Mr. Fellin was disbarred by the Law Society for the reasons summarized above, especially the matters relating to Mr. Fellin's dishonest dealings in connection with mortgage transactions and the resulting serious financial losses to Mr. Fellin's clients, afford reasonable grounds for belief that Mr. Fellin will not deal or trade in mortgages in accordance with the law and with integrity and honesty.

B. False Information Provided In Application for a Licence

9. On June 21 , 2008, Renata Fellin submitted an electronic application for a licence as mortgage agent working for Zidner Real Estate Limited. His application was successful and Mr Fellin was granted an agent's licence. Although his licence

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initially allowed him to act as a mortgage agent for Zidner Real Estate Limited, he was later transferred to Mortgage Alliance Company of Canada Inc.

10. In that application Mr. Fellin was required to answer several quest ions. At the end of the application , Mr. Fellin was asked to confirm the answers he had given. The application stated:

·Providing false. misleading or incomplete information in this application/declaration...is an offence under the Mortgage Brokers Lenders and Administrators Act, 2006 and doing so may be sufficient grounds to reject the application/declaration, revoke a licence,.o.or result in your prosecution .

By clicking the "Conf trmed' button below. you swear that have truthfully answered all questions,"

11. Mr. Fellin confirmed that he truthfully answered all of the quest ions contained in the application .

12. In his app licat ion, Mr. Fellin indicated that he qualified for a licence on the basis that he had been authorised to deal in mortgages on behalf of a registered mortgage broker for at least 24 of the previous 36 months.

13. Subsequent inquiries by the Financial Services Commission of Ontario ("FSCO") revealed that in the previous 36 months , Mr. Fellin had been so authorised only from April 1, 2008, to the date of the applicat ion. a period of less than three (3) months.

14. Mr. Fellin provided FSCO with false information indicating that he qualified for a mortgage agent licence when in fact he did not. He was granted a licence based on that false information.

15. Also, in his application, Mr. Fellin answered "No" to the following question:

"Have you ever been refused registration or a licence under any legislation which required registration or licensing to deal with the public in any capacity ,..or have you held such a licence and been the subject of a disciplinary proceeding that resulted in a penalty being imposed...1­

16. FSCO later learned that Mr. Fellin had been a membe r of the Law Society of Upper Canada from February 6, 1996, until April 26, 2006, when he was disbarred .

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17. At the time that Mr. Fellin completed the June 21, 2008 , online application and stated that he had never held a licence and been the SUbject of disciplinary proceed ings resulting in a penalty, he had in fact been disbarred by the Law Society of Upper Canada and thereby made a false statement in his application.

18. Providing false information in an application for a licence is a circumstance that the Superintendent is required to consider in determining whether an individual is suitable to be licensed as a mortgage agent (s.10 of Ontario Regulation 409/07, made under the Act).

19. Mr. Fellin provided false statements on his mortgage agent application, both with respect to his qualification for a licence and with respect to past disciplinary action taken against him, and is therefore not suitable to be licensed as a mortgage agent.