B.C. broker fined $80,000 and barred for falsified applications
Under the agreement, Duggal will pay a $50,000 administrative penalty — the maximum allowed under the MBA — within six months, and a further $30,000 in investigation costs within 30 days.
The Financial Services Regulatory Authority of Ontario has proposed enforcement action against an Ontario-licensed mortgage broker and a private lending firm over alleged off-book mortgage dealings and mortgage administration breaches.https://t.co/ocPe7fuFeC
— Canadian Mortgage Professional Magazine (@CMPmagazine) July 10, 2026
Eight files, eight sets of falsified documents
The BCFSA’s investigation traced back to three separate complaints the regulator received between November 2022 and April 2023. Those complaints alleged Duggal offered to fabricate documents for clients who would not otherwise qualify for mortgage financing and collected upfront fees in the process.
While a September 2023 office visit and forensic review of electronic records did not uncover material directly tied to those complaints, the regulator used them as the basis for a broader audit of his practice.
Investigators obtained copies of all 98 mortgage applications Duggal had submitted between September 2, 2022 and September 22, 2023, and selected eight for detailed review. All eight contained falsified income supporting documents.
The fabricated materials spanned a range of document types, including T1 General tax returns, T4s, Notices of Assessment, bank statements, invoices, and accountant-attributed records, each inflating the apparent income of the relevant borrowers.
