IN THE MATTER OF the Insurance Act, R.S.O. 1990, c. I.8, as amended (the “Act”), in particular sections 441, 441.1, 441.3, and 439;

AND IN THE MATTER OF 1843538 Ontario Inc. C.O.B. as McLaren Collision, Fady Rony Warda, and Rony Amanuel Warda.

COMPLIANCE ORDER AND

ORDER IMPOSING ADMINISTRATIVE PENALTIES

1843538 Ontario Inc. (“McLaren”) is an autobody shop that charged insurers for repairs that it made to vehicles. Fady Rony Warda ("Fady Warda") worked for McLaren.

On March 20, 2020, the Chief Executive Officer (“CEO”) of the Financial Services Regulatory Authority of Ontario (“FSRA”), issued a Notice of Proposal (the “NOP”) in respect of McLaren, Fady Warda and Rony Warda.

The NOP stated that McLaren, Fady Warda and Rony Warda had contravened section 439 of the Act by committing unfair or deceptive acts or practices. The NOP proposed to impose an order that McLaren, Fady Warda and Rony Warda cease engaging in the business of insurance, or any aspect of the business of insurance specified by the CEO, as well as administrative penalties on each.

McLaren, Fady Warda and Rony Warda disputed the allegations and, on or about September 29, 2020, requested hearings before the Financial Services Tribunal (the “Tribunal”) in respect of the NOP in accordance with sections 441(5) and 441.3(5) of the Act.

On September 25, 2023, McLaren and Fady Warda withdrew their Requests for Hearing and on September 26, 2023, the Tribunal closed its file in respect of this matter.

These orders are made pursuant to a settlement entered into by McLaren and Fady Warda with the Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer.

ORDER

It is hereby ordered that 1843538 Ontario Inc. (“McLaren”) and Fady Rony Warda, immediately cease and desist from engaging in the business of insurance. Further, McLaren and Fady Rony Warda are ordered to:

a.    Immediately cease and desist charging for any work performed if it is reasonable to expect that all or a portion of such charges will be directly or indirectly paid for by an insurer;

b.    Immediately cease and desist from accepting any fees, funds, or anything of value for any work performed if it is reasonable to expect that all or a portion of such fees, funds, or thing of value will be directly or indirectly paid for by an insurer;

c.    Immediately cease and desist from holding themselves out to consumers as being authorized to perform any work that will be directly or indirectly paid for by an insurer; and

d.    Immediately cease and desist from advertising, soliciting, or offering any services related to any work that that will be directly or indirectly paid for by an insurer.

It is hereby ordered that this order is permanent for McLaren. This order is for 3 months for Fady Rony Warda.

This order is imposed for the reasons set out in the Minutes of Settlement and Undertaking dated September 24, 2023.

ORDER

An administrative penalty in the amount of $75,000 is hereby imposed on 1843538 Ontario Inc. (“McLaren”).

An administrative penalty in the amount of $15,000 is hereby imposed on Fady Rony Warda.

These administrative penalties are imposed for the reasons set out in the Minutes of Settlement and Undertaking dated September 24, 2023.

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver invoices to McLaren and Fady Rony Warda with information as to where and how to pay the administrative penalties.

If McLaren or Fady Rony Warda fail to pay the administrative penalty in accordance with the terms of this Order and any further agreement or undertaking, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of an order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario,

September 26, 2023.

Elissa Sinha

Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

Si vous désirez recevoir cet avis en français, veuillez nous envoyer votre demande par courriel immédiatement à : contactcentre@fsrao.ca.