23 May 2019 13:30
Photo : Freepik
345 000 $. This is the total of the fines that will be required to pay Kamran Shahid and his brother Imran Shahid for selling universal life insurance to newcomers who have little financial knowledge.
On may 2, the judge Mélanie Hébert, of the Court of Québec, district of Montreal, endorsed the penalty jointly proposed by theAutorité des marchés financiers and by the respondents.
Thus, Kamran Shahid pleaded guilty to 11 counts of having submitted false or misleading information to an insurer or to a client on the occasion of the activities governed by the Act respecting the distribution of financial products and services (distribution ACT), as well as to 10 counts of aid to the illegal exercise of the activity of insurance representative, and one count for violating the orders of a customer. He received fines totalling $ 155 000 $.
For his part, Imran Shahid has pleaded guilty to nine counts of having submitted false or misleading information to an insurer or to a client on the occasion of the activities governed by the ACT and nine counts of unlawful exercise of the activity of insurance representative. He received fines totalling $ 190 000 $.
In consideration of the guilty pleas, the Authority has removed a total of 12 counts, including one charge that was the company 9322-5746 Quebec inc.
The investigation conducted by the Authority showed that, at the time of the alleged offences, Kamran Shahid was registered with the Authority as a representative in insurance of persons. In the course of his practice, he sought, with his brother Imran, members of the communities of pakistani and indian Montreal by the publication of announcements or advertisements on radio or in the papers sent to these communities.
Six schemes have been used by the brothers Shahid in order to sell universal life insurance policies to at least 15 people. These customers were, for the most of the newcomers who had little or no knowledge of financial matters and who were then in a precarious financial situation. In the majority of cases, the proposals for insurance have been fulfilled without the presence of customers and more information found there were false.