Interim Cease and Desist Order Against Khalil (Evan) Abraham Ismaeli aka Khalil Asmail and Top Defence Inc.

REGARDING the Insurance Act, R.S.O. 1990, Chapter I.8, as amended, in particular section 441

AND REGARDING a Proposed Permanent Cease and Desist Order against Khalil (Evan) Abraham Ismaeli aka Khalil Asmail and Top Defence Inc.

AND REGARDING an Interim Cease and Desist against Khalil (Evan) Abraham Ismaeli aka Khalil Asmail and Top Defence Inc.

NOTICE OF PROPOSED PERMANENT CEASE AND DESIST ORDER
and
INTERIM CEASE AND DESIST ORDER

The Superintendent of Financial Services (“Superintendent”) is of the opinion that Khalil (Evan) Abraham Ismaeli aka Khalil Asmail (“Ismaeli”) has committed, and is committing, unfair or deceptive acts or practices in the business of acting as a statutory accident benefits representative. The particulars are set out in the Report of the Superintendent appended as Appendix “A” to this Notice. The Superintendent intends to order that Ismaeli and Top Defence Inc. cease carrying on business as statutory accident benefit representatives.

NOTE

WITHIN 15 DAYS after receiving this notice, you may request in writing that the Financial Services Tribunal hold a hearing on whether or not a permanent cease and desist order should be issued.

IF NO HEARING IS REQUESTED within 15 days, the Superintendent may make a permanent order in accordance with this notice, which shall take effect on the date set out in the order.

A request for a hearing should be directed, in writing, to:

Financial Services Tribunal
5160 Yonge Street
North York, Ontario
M2N 6L9

Attention: Rhonda Booth, Registrar Fax: (416) 226-7750

NOTICE

The Superintendent is of the opinion that the interests of the public may be prejudiced or adversely affected by a delay in the issuance of a permanent order for the following reasons:

  1. Serious questions have arisen as to the proper and legal name and identity of Ismaeli;
  2. Despite a demand for information by, and his promise to provide information to, the Financial Services Commission of Ontario (“FSCO”), information remains outstanding; and,
  3. The obligation of statutory accident benefit representatives, set out in the Code of Conduct for Statutory Accident Benefit Representatives, to respond to a request for information from FSCO fully and promptly is a critical requirement in the regime that allows individuals to be exempted from the prohibition set out in section 398 of the Act, and allow them to act as representatives. Ismaeli’s failure to provide FSCO with the requested information strikes at the very heart of the regime to effectively ensure confidence in the automobile insurance system and allow FSCO to ensure compliance.

In accordance with subsection 441(4) of the Act, the Superintendent, without prior notice, may make an interim order which shall take effect immediately.

INTERIM CEASE AND DESIST ORDER

Effective this date, pursuant to subsection 441(4) of the Act ,the Superintendent orders that Khalil (Evan) Abraham Ismaeli aka Khalil Asmail, and Top Defence Inc., and any agents or representatives thereof:

A. Immediately cease carrying on business as statutory accident benefit representatives;

B. Immediately notify in writing all clients of Khalil (Evan) Abraham Ismaeli aka Khalil Asmail who have claims for statutory accident benefits that he and Top Defence Inc. can no longer act for them; provide them with a copy of this cease and desist order; and, provide copies of every notification sent to each client to the Superintendent forthwith; and,

C. Immediately cease advertising or holding out, in any form, as a statutory accident benefits representative within Ontario.

NOTE

TAKE NOTICE THAT the above Interim Cease and Desist order shall become permanent unless within 15 days a written request for a hearing before the Financial Services Tribunal is made.

AND FURTHER TAKE NOTICE THAT if a hearing is requested, the Superintendent may extend the interim cease and desist order until the hearing before the Financial Services Tribunal is concluded.

AND FURTHER TAKE NOTICE THAT section 447(2)(b) of the Act provides that any person who fails to comply with any order made under the Act is guilty of an offence and liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.

AND FURTHER TAKE NOTICE THAT section 447(4) of the Act provides that every director, officer, and chief agent of a corporation who caused, authorised, permitted or participated in a corporation committing an offence, or who fails to take reasonable care to prevent a corporation from committing an offence, is also guilty of an offence and is liable on a first conviction to a fine of not more than $100,000 and on each subsequent conviction to a fine of not more than $200,000.


ISSUED AT the City of Toronto, June 14, 2005.


Bryan P. Davies
Superintendent of Financial Services

TO:

Khalil (Evan) Abraham Ismaeli aka Khalil Asmail
333 Shepherd Avenue East, Suite 100
Toronto M2N 3B3

AND TO:

Top Defence Inc.
333 Shepherd Avenue East, Suite 100
Toronto M2N 3B3