The Registered Insurance Brokers of Ontario v. Frank Peragine, 2026 ONRIBODC 4

File No: 6861, 6864

REGISTERED INSURANCE BROKERS OF ONTARIO

DISCIPLINE COMMITTEE

Between:

THE REGISTERED INSURANCE BROKERS OF ONTARIO

and

FRANK PERAGINE (38442)

Heard: February 26, 2026

PANEL MEMBERS:

• Darren Hamilton, Chair
• Paul Armstrong, Broker
• Mike Moyer, Broker
• Barry Hogan, Broker
• Diane Scott, Public Member

IN ATTENDANCE:

• Nabiel Dawood, Counsel for RIBO
• Joshua Freedman, Counsel for Licensee
• Heather Vaughan, Discipline Committee Independent Legal Counsel

DECISION AND REASONS

INTRODUCTION:

1These matters were referred to the Discipline Committee (the “Panel”) by the Complaints Committee in accordance with the Registered Insurance Brokers Act section 18. The parties agreed to proceed with the two referred files, being 6861 and 6864, together.

2This matter was convened and heard virtually on February 26, 2026 pursuant to the Registered Insurance Brokers Act, R.S.O. 1990, c. R.19, (RIBA) and the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22 and regulations thereunder and was governed by the Rules of Procedure of the Discipline Committee of the Registered Insurance Brokers of Ontario (RIBO).

3The hearing proceeded by way of an Agreed Statement of Facts (ASF) and a Joint Submission on Penalty (JSP) proposed by counsel for the parties.

ALLEGATIONS OF MISCONDUCT:

4The allegations of misconduct as stated in the joint Notice of Hearing dated the 13th day of February 2026, were as follows:

1. The Licensee engaged in misconduct pursuant to the Registered Insurance Broker Act (the "Act"), Regulation 991, section 15 (1) (9) by failing to comply with the provisions of the Act, the Regulation and the By-Laws of the Corporation by acting contrary to sections 12(1) and 14(1), 14(2), 14(3), 14(4), 14(5), 14(6), 14(7.1), 14(8), 14 (9), 14(10), 14(11), 14(12), 14(13) and 14(4) of the Code of Conduct, which states as follows:

12 (1) Where a member proposes to charge a fee for service in addition to retaining a portion of the premium charge, the member, before placing the insurance or providing a service for which a fee is to be charged, shall disclose to the person whom the member proposes to charge the amount of the fee, the portion of the premium retained and the total remuneration on the transaction.

14 (1) A member shall discharge the member’s duties to clients, members of the public, fellow members and insurers with integrity.

14 (2) A member owes a duty to the member’s client to be competent to perform the services which the member undertakes on the client’s behalf.

14 (3) A member shall serve the member’s client in a conscientious, diligent and efficient manner and shall provide a quality of service at least equal to that which

members would generally expect of a member in a like situation.

14 (4) A member shall be both candid and honest when advising the member’s

client.

14 (5) A member shall hold in strict confidence all information acquired in the course of the professional relationship concerning the business and affairs of the member’s client, and the member shall not divulge any such information unless authorized by the client to do so, required by law to do so or required to do so in conducting negotiations with underwriters or insurers on behalf of the client.

14 (6) A member shall observe all relevant rules and laws regarding the preservation and safekeeping of property of the client entrusted to the member and, when there are no such rules or laws or the member is in doubt, the member must take the same care of such property as a careful and prudent person would take of the person’s own property of like description.

14 (7.1) A member shall disclose in writing to a client or prospective client any conflict of interest or potential conflict of interest of the member that is associated with a transaction or recommendation.

14 (8) A member shall not stipulate, charge or accept any fee that is not fully disclosed, or the basis for which is not fully disclosed prior to the service being rendered, or which is so disproportionate to the service provided as to be unconscionable.

14 (9) A member shall encourage public respect for and try to improve the practice of the member’s vocation.

14 (10) A member shall make the member’s services available to the public in an efficient and convenient manner which will command respect and confidence and which is compatible with the integrity, independence and effectiveness of the member’s vocation.

14 (11) A member shall assist in maintaining the integrity of the member’s vocation and should participate in its activities.

14 (12) A member shall assist in preventing the unauthorized practice of the member’s vocation.

14 (13) A member’s conduct towards other members, members of the public, insurers and the Corporation shall be characterized by courtesy and good faith.

14 (14) A member shall cooperate in an investigation conducted by the Corporation.

5The Notice of Hearing dated February 13, 2026 was marked as Exhibit 1.

THE LICENSEE’S PLEA:

6The Licensee pled guilty to the allegations set out in paragraphs 15(1) (9) by failing to comply with the provisions of the Act, the Regulation and the By-Laws of the Corporation by acting contrary to sections 12(1) and 14(1), 14(2), 14(3), 14(4), 14(5), 14(6), 14(7.1), 14(8), 14 (9), 14(10), 14(11), 14(12), 14(13), and 14(14) of the Code of Conduct.

7The Panel conducted a Plea Inquiry and were satisfied that the plea was voluntary, informed and understood.

AGREED STATEMENT OF FACTS:

8RIBO and the Licensee advised the Panel that an agreement had been reached on the facts and filed an ASF which was accepted by the Panel and filed as Exhibit 2. The relevant facts in the ASF provide as follows:

Background

1. The Licensee’s registration number with RIBO is R38442. His current license status with

RIBO is “Active.”

2. On February 13, 2020, RIBO received a written complaint from Clover Insurance Brokers (“Clover”) regarding the Licensee requesting premiums from taxi driver clients and then depositing them into his personal bank account.

3. On September 30, 2020, RIBO received a written complaint from Cowan Insurance Group Ltd. (“Cowan”) regarding various misconduct that was discovered after a complaint was received by Cowan from a taxi driver about a premium overpayment that was made to the Licensee.

4. Based on the information received from Clover and Cowan, RIBO commenced two

investigations (the “Investigations”).

5. On May 26, 2025, the Complaints Committee considered both Investigations and referred

both to the Discipline Committee.

Key Facts

(i) Depositing Policy Premiums into a Personal Bank Account

6. In August 2019, the Licensee distributed an “Insurance Program” flyer, which indicated that taxi drivers could obtain coverage provided that payment was made directly to Clover and an additional amount was paid directly to the Licensee. Clover was not aware of the flyer and did not approve it.

7. Between August and September 2019, the Licensee accepted and deposited into his personal bank account cheques from taxi fleet/taxi drivers. These payments were in addition to policy premiums paid by taxi drivers to Clover.

8. When Clover became aware that the Licensee had requested his taxi driver clients make additional payments to him directly in order to obtain coverage, the Licensee made false and misleading statements to Clover. Specifically, the Licensee told Clover that only one cheque was made out to him personally.

(ii) Various Misconduct Uncovered by Cowan

9. On February 5, 2020, a taxi driver complained to Cowan that he was forced to pay the Licensee $1,000 for insurance. He was provided with an “Insurance Program” flyer, which prominently displayed Cowan’s logo, but which was not authorized by Cowan. This flyer displayed the Licensee’s name, his RIBO registration number, and his cell phone number, and stated that taxi drivers wishing to renew their policies were required to provide payment to Cowan in addition to a cheque payable to the Licensee.

10. When Cowan spoke to the Licensee about the flyer, the Licensee stated that he had no

knowledge of the flyer and that he did not create it.

11. The Licensee was suspended from Cowan with pay pending further investigation. As a result of Cowan’s investigation, which included a review of the Licensee’s laptop, it was discovered that:

a) The Licensee sent work information, including private and confidential client information, to his wife, who was not authorized to receive the information;

b) The Licensee issued a certificate to a policyholder with incorrect details regarding the term, policy number, broker and insurer;

c) The Licensee issued Facility liability certificates under the name of RSA Inc. only in order to make it appear that these vehicles were insured in the voluntary market;

d) There is no evidence that the Licensee advised four clients about a gap in coverage from January 31, 2020 to February 5, 7, 8 and 9, 2020;

e) The Licensee provided a client with certificates of insurance and advised that if there were any revisions to be made that someone from the client’s office could amend on his behalf; and

f) The Licensee requested that a letter of experience which showed a client had coverage until July 31, 2019, be changed to January 31, 2020, in circumstances where there was no evidence there was an actual insurance policy bound for this time period.

9The Licensee admitted that he engaged in misconduct by breaching sections 12(1) and 14(1), 14(2), 14(3), 14(4), 14(5), 14(6), 14(7.1), 14(8), 14 (9), 14(10), 14(11), 14(12), 14(13) and 14(4) of the Code of Conduct.

SUBMISSIONS OF THE PARTIES

10RIBO and the Licensee submitted that there was sufficient evidence before the Panel to make a finding that the Licensee was guilty of misconduct for breach of the sections of the Code of Conduct outlined in the Notice of Hearing.

FINDINGS AND REASONS FOR DECISION:

11The Panel agrees with the submissions of the parties that there is sufficient evidence in the ASF to support the finding of guilt and we find the licensee guilty of misconduct for the breach of the Code of Conduct set out in sections 12(1) and 14(1), 14(2), 14(3), 14(4), 14(5), 14(6), 14(7.1), 14(8), 14 (9), 14(10), 14(11), 14(12), 14(13) and 14(4) of Regulation 991 of RIBA.

JOINT SUBMISSION ON ORDER:

12The Panel was advised that the parties had agreed on the appropriate Order in this case and the parties filed a Joint Submission on Penalty (JSP) which was marked as Exhibit 3.

13The Registered Insurance Brokers (“RIBO”) and Frank Peragine (the “Licensee”) jointly request that the Panel of the Discipline Committee impose the following penalty:

1. That the Licensee is hereby reprimanded.

2. That the Licensee shall pay a fine payable to the Minister of Finance in the amount of $2,500.00.

PENALTY ORDER MADE:

14The Panel accepted the JSP of the parties and accordingly made an Order effective on the day of the hearing as follows:

1. That the Licensee is hereby reprimanded.

2. That the Licensee shall pay a fine payable to the Minister of Finance in the amount of $2,500.00.

15After making our penalty decision, the Licensee requested time to pay the fine. It is expected that fines are paid the day that they are ordered, particularly when the penalty is negotiated ahead of the hearing. The Panel would expect that if terms of payment were being requested on an agreement hearing that they form part of the Joint Submission on Penalty.

16The Panel agreed to provide the Licensee with 30 days to pay the fine.

REASONS FOR PENALTY:

17The Registered Insurance Brokers of Ontario (RIBO) is a self-governing organization that regulates the licensing, professional competence, ethical conduct and insurance related financial obligations of all independent general insurance brokers in the province of Ontario to ensure the public is served and protected accordingly.

18The allegations against the Licensee in this case were numerous, serious, and contained elements of ethical failings, including misleading consumers and providing false and misleading statements to two employers during their investigations of complaints. Payments were accepted by the Licensee from customers and deposited into the Licensee’s personal bank account in addition to premiums paid by consumers indicating financial impropriety.

19The Licensee’s counsel submitted that the Licensee was licensed since 2014 and is no longer writing automobile policies. He is working part time in a media company and these failings occurred in the past, almost 6 – 7 years ago.

20No discipline history was alleged in this case and the Panel was not aware of any subsequent issues. The conduct did occur some time ago, in 2019 and 2020, which gave the Panel some comfort.

21By pleading guilty to these allegations, the Licensee saved RIBO and numerous witnesses across two brokerages, and multiple consumers, from attending what would likely have been a very lengthy hearing.

22The Panel struggled with the penalty of only a reprimand and a fine of $2,500.00 for this conduct, however the panel recognized that JSPs are used to promote efficiency, provide certainty to the parties and encourage settlement of matters. Joint Submissions allow Licensees to accept responsibility and move towards rehabilitation and avoid lengthy and costly proceedings.

23Ultimately, after much discussion, the Panel determined that the joint submission was not so unhinged from the circumstances that it brought the administration of justice into disrepute.

24In accepting the JSP, the Panel members recognized the high bar set by the Supreme Court of Canada in R. v. Anthony-Cook, 2016 SCC 43, to reject a joint submission, which applies to this tribunal pursuant to the Ontario Divisional Court’s decision in Bradley v. Ontario College of Teachers, 2021 ONSC 2303.

25The Panel considered the severity and nature of the misconduct alleged, the mitigating and aggravating factures, rehabilitation of the Licensee and specific and general deterrence.

26The reprimand and fine serve to educate and rehabilitate the Licensee and deter further conduct of this nature.

27The goal of general deterrence is met by this public decision.

Darren Hamilton, Discipline Committee Chair March 26, 2026