FSRA takes enforcement action against John Chehade, Rhett McClenaghan and 2078637 Ontario Inc. operating as Forest City Living

TORONTO, March 26, 2026 /CNW/ - The Financial Regulatory Authority of Ontario, FSRA, has imposed conditions on the mortgage agent licence issued to John Chehade (Chehade) and on the mortgage broker licence issued to Rhett McClenaghan (McClenaghan).

FSRA has also imposed administrative penalties in the total amount of $12,500 against Chehade, $4,000 against McClenaghan and $17,500 against 2078637 Ontario Inc. operating as Forest City Living (Forest City Living).

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

• by giving false or deceptive documents when dealing in mortgages, contrary to subsection 43(2) of the Act;
• by allowing himself to be used by a borrower to facilitate dishonest activity, contrary to section 3.1 of Ontario Regulation 187/08;
• providing false information to FSRA, contrary to section 45(1) of the Act; and
• causing Forest City Funding Inc. to contravene subsection 24(1) of Ontario Regulation 188/08, by failing to take reasonable steps to ensure that mortgages he presented to borrowers were suitable for them, contrary to section 3 of Ontario Regulation 187/08.

McClenaghan contravened the Act and its regulations as follows:

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

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

FSRA issued these Orders as a result of a settlement with Chehade, McClenaghan, and Forest City Living.

Learn more:

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

For media inquiries:

Lilian Kim 
Sr. Media Relations Officer
Financial Services Regulatory Authority
[phone]
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario