Ghost of a flea

Introducing Omar Kalair and Derek Scheinman

"I'm a firm believer in allowing people to practice their customs, as long as it's not harmful or affecting anybody else's life." - Derek Scheinman

On April 9, 2007, the Toronto Star's Judy Steed introduced us to a new partnership between Omar Kalair (founder of UM Financial) and Derek Scheinman (president of New Horizon Mortgages Investment Corp.). It was a uniquely Canadian feel good story about two men reaching out from across a religious and historical divide, and one of nine chosen examples for the Star's four month Build A Business Challenge.

When [Scheinman's] great-great grandparents came to Canada, "they came for the same reasons people are coming today: for the opportunities. They want to do things differently; they've left the problems behind. They enjoy being free. They want to live in peace and harmony."

Kalair and Scheinman came together after the Star ran a story about UM Financial. Kalair had secured $150 million (the Star's figure at the time of publication, UM Financial cites $120 million) from Credit Union Central of Ontario to back his sharia compliant mortgage business, but had "little luck with the major banks." While Scheinman was born to "non-religious" Jewish parents, he could understand that under Sharia ("way" or "path", the sacred law of Islam) Muslims are not allowed to pay or earn interest.

When the two men met, Scheinman wasn't put off by Kalair's obvious adherence to Muslim traditions. (Kalair has a beard and wears the long tunic and kufi – cap – of traditional Muslim men.)

Kalair and Scheinman worked together to finance the purchase of a larger school building for the "Mur-ul-Huda Academy" (I believe the Star has misspelled Nur-al-Huda Academy, but then I don't enjoy their multiple layers of editing and fact checking so what do I know). The $2 million dollar deal was the largest UM Financial had handled.

Scheinman talked to his shareholders. "We've made the commitment and we're ready to go ahead," he says. "The deal fits our investors' needs and it's structured so that it's `kosher' for Muslims."

Also kosher for Muslims?

The iFreedom Plus MasterCard.

Thanks to UM Financial.

Told that he sounds like a natural politician, Scheinman admits he's "thinking about running, eventually, as a Liberal, should my business continue to grow."

Related: The Toronto Star explains how the iFreedom MasterCard works.

Because that's reporting the news.

Also related: A word on Islamic finance from UM Financial. With props to Mufti Taqi Usmani.

Posted by Ghost of a flea at August 31, 2010 05:48 PM