Unregistered B.C. mortgage broker fined $30K, was unaware his business needed registration

A B.C. man who lent his own money to more than a dozen borrowers has agreed to pay a $30,000 fine for unregistered mortgage lending.

Jefferson Wu lent the money through his company Chartell Properties Ltd. from 2015 through 2022, according to a consent agreement published earlier this month by the BC Financial Services Authority. 

Neither Wu nor Chartell has ever been registered to conduct mortgage broker activities in the province, according to the agreement, which says Wu was the company's sole owner and director.

The agreement also suggests they didn't realize they were engaged in misconduct.

"Neither of the respondents were aware that loaning their own funds could constitute unregistered mortgage activities as defined by the (Mortgage Brokers Act)," the consent agreement reads.

As of January 2021, Chartell had mortgages registered on 13 B.C. properties, the agreement notes, adding that neither Wu nor Chartell was exempt from registration requirements.

"The respondents have fully cooperated with BCFSA’s investigation of their unregistered activities and provided all requested documents," the consent agreement reads.

In addition to the $30,000 penalty, Wu and Chartell also agreed to pay the BCFSA "investigation costs" of $3,805.93.