TORONTO, Dec. 16, 2022 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) issued orders imposing administrative penalties in amounts between $15,000 - $55,000 on Jay Sanjay Patel, Nirali Chandrakant Patel and Pratik Gohel.
Jay Sanjay Patel, Nirali Chandrakant Patel and Pratik Gohel were licensed insurance agents who used international students in financial need to generate fraudulent insurance business. The agents lured students by advertising non-existent employment opportunities, targeting students who needed income in order to meet their expenses in Canada.
The agents misused personal information collected from these students to apply for insurance policies, often without their knowledge, and claimed purchasing a life insurance policy was a mandatory condition for employment. The agents made no effort to ascertain if the insurance policies were suited to the needs of the students, who had no stable income and were living temporarily in Canada under 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 Elissa Sinha, Director, Litigation & Enforcement, Legal & Enforcement at FSRA. "FSRA is committed to protecting consumers purchasing insurance and ensuring that regulated individuals and companies uphold the required standard of conduct."
FSRA issued this order as a result of a settlement with Jay Sanjay Patel, Nirali Chandrakant Patel and Pratik Gohel. They are no longer licensed under the Insurance Act.
Jay Sanjay Patel admits that they breached the Act by offering to pay life insurance premiums for international students as a way of generating additional business. Patel also admits that they breached the act by pressuring international students to purchase insurance contracts, misleading international students and insurance companies, and providing false information to FSRA.
Nirali Patel admits that they breached the Act by pressuring international students to purchase insurance contracts, making misleading statements to international students and insurance companies, and providing false information to FSRA.
Pratik Gohel admits that they breached the Act by making misleading statements to international students and insurance companies, and providing false information to FSRA.
Read:
- FSRA's Order
- Financial Services Tribunal decision/settlement
- Notice of Proposal/Notice of Intended Decision
Learn more:
FSRA is working to protect consumers through its monitoring and enforcement activities.
FSRA continues to work on behalf of stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. Media Relations and Digital Officer
Financial Services Regulatory Authority|
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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