FSRA issues notice of proposal against John (Johnny) Chehade, Rhett Richard (Richard Rhett) McClenaghan and 2078637 Ontario Inc. operating as Forest City Living

TORONTO, Jan. 15, 2026 /CNW/ - The Financial Regulatory Authority of Ontario, FSRA, has initiated enforcement action against John (Johnny) Chehade (Chehade), Rhett Richard (Richard Rhett) McClenaghan (McClenaghan) and 2078637 Ontario Inc. operating as Forest City Living (Forest City Living).

FSRA alleges that Chehade and McClenaghan contravened the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act) and its regulations as follows:

• by giving false or deceptive information and documents when dealing in mortgages, contrary to subsection 43(2) of the Act; and
• by allowing themselves to be used by a borrower and a lender to facilitate dishonest activity or illegal conduct, contrary to section 3.1 of Ontario Regulation 187/08.

FSRA also alleges that Chehade contravened the Act as follows:

• causing Forest City Living to contravene subsection 24(1) of Ontario Regulation 188/08, by failing to take reasonable steps to ensure that mortgages he presented to the Borrowers were suitable for them, contrary to section 3 of Ontario Regulation 187/08;
• by receiving remuneration outside the brokerage, contrary to subsection 4(1) of Ontario Regulation 187/08; and
• by providing false information to FSRA, contrary to section 45(1) of the Act.

FSRA alleges that Forest City Living contravened the Act and its regulations by carrying on a business as a mortgage lender while not being licensed or exempted from the requirement of being licenced, contrary to section 4(2) of the Act.

FSRA is proposing to refuse to renew the mortgage agent level 2 licence issued to Chehade and to amend the mortgage broker licence issued to McClenaghan and impose the condition that McClenaghan be restricted to a mortgage agent level 2 for a period of two years.

FSRA is also proposing to impose administrative penalties against Chehade in the amount of $25,000, $6,000 against McClenaghan and $30,000 against Forest City Living.

Chehade, McClenaghan and Forest City Living have requested a hearing before the Financial Services Tribunal about this proposal.

Learn more:

Access our enforcement database to see how FSRA is working to protect consumers through its monitoring and enforcement activities. 

For media inquiries:

Russ Courtney
Senior Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario