🚩 LendingArch Investigation
🧾 The Highest Level of Proof
This case was resolved by the Alberta Securities Commission through a formal settlement agreement (2020 ABASC 62) involving:
- LendingArch Financial Inc.
- OmniArch Capital Corporation
- Multiple executives and related companies
⚖️ 1. Key Outcome: They Admitted Breaching Securities Laws
This is critical:
👉 The respondents explicitly admitted they:
- Violated Alberta securities laws
- Made misleading statements to investors
- Failed to disclose critical financial information
- Acted contrary to the public interest
🔥 2. What Actually Happened (Confirmed Facts)
💰 $127 MILLION Raised from Investors
Through bond offerings (10% returns promised)
Marketed as investing in mortgage-backed securities (RMBS)
🚩 Funds Were Redirected (Undisclosed)
Instead of using funds as promised:
Millions were diverted into related companies
Confirmed Transfers:
$6.27M → OmniArch Ventures
$2.57M → personal holding company
$778K → media company
$405K → real estate company
👉 Then:
$4M+ of that flowed directly into LendingArch
⚠️ Critical Finding:
These loans were NOT disclosed to investors
🧠 Why That Matters
Investors were told:
Funds would go into mortgage-backed securities
Reality:
Funds were redirected internally to companies owned by the same people
👉 That is the definition of:
material misrepresentation
📉 3. Misleading Claims (Proven)
The settlement confirms:
❌ False / Misleading Statements About:
Management experience
Use of funds
Compensation structures
Example:
Executives claimed strong finance backgrounds
Reality: no formal training or credentials
🔁 4. The LendingArch Connection (Direct)
From the settlement:
LendingArch is explicitly described as:
“an online business which refers borrowers to lenders for a fee”
It received over $4M from these undisclosed related-party loans
👉 This is not indirect.
👉 This is direct financial linkage
⚖️ 5. Penalties & Restrictions (Severe)
👤 Individuals:
Jay Modi
20-year market ban
$500,000 penalty
Arti Modi
10-year ban
$180,000 penalty
Rajeev Singh
3-year ban
$115,000 penalty
🏢 Companies (Including LendingArch):
🚫 Permanent Restrictions:
- Cannot freely raise capital
- Cannot act as investment issuers
- Cannot operate normally in securities markets
👉 LendingArch specifically agreed to:
- Permanent limitations on capital-raising
- Restrictions on financial activity
- Oversight when engaging in regulated transactions
🔴 6. The Pattern (Now Proven, Not Alleged)
Across all documents:
2010–2015 $127M raised from investors
2014–2016 Undisclosed related-party loans
2016 Insolvency (CCAA – EY oversight)
2017 Fraud allegations (ASC application)
2020 Settlement with admissions of misconduct
🚨 FINAL DEALHELP VERDICT❗CONFIRMED HIGH-RISK ENTITY
This is no longer:
“Bad reviews”
“Complaints”
“Allegations”
👉 This is:
✅ Admitted misconduct
✅ Regulatory penalties
✅ Investor harm exposure
✅ Direct financial ties to LendingArch
🛑 Consumer Warning (Simple Version)
If you're considering using LendingArch:
⚠️ Understand:
It is a lead-generation platform (not a lender)
It has documented ties to a securities misconduct case
It received funds from undisclosed internal transactions
🧠 What You Should Do Instead
✔️ Apply directly with known lenders
✔️ Avoid platforms that resell your data
✔️ Verify who actually funds your loan
✔️ Get a second opinion before signing anything