The Financial Services Regulatory Authority of Ontario (FSRA) announced that it has issued orders imposing administrative penalties on three agents for their scheme to defraud international students.
The three formerly licensed agents – Jay Sanjay Patel, Nirali Chandrakant Patel and Pratik Gohel –lured students by advertising non-existent employment opportunities and targeted international students who needed income to support their expenses while in Canada.
According to the FSRA, the three misused the personal information collected from students to apply for insurance policies – often without the students’ knowledge. The three also claimed to the students that purchasing life insurance was a mandatory condition for employment. It was noted that the agents made no effort to determine if the insurance policies were suited to the needs of the students, who had no stable income and were living in Canada temporarily through study permits.
“What the three former insurance agents did to these students is egregious and completely unacceptable and our enforcement action should send a clear message that this kind of activity will not be tolerated," said FSRA director of litigation & enforcement, legal enforcement Elissa Sinha. “FSRA is committed to protecting consumers purchasing insurance and ensuring that regulated individuals and companies uphold the required standard of conduct."
A release said that the FSRA issued this order following a settlement with the three, who are no longer licensed under the Insurance Act. Each of the agents has been imposed administrative penalties between $15,000 and $55,000.
