FSRA issues notice of proposal against Harold Gerstel, Harold the Mortgage Closer Inc., and Esther Gerstel Inc.

TORONTO, May 16, 2024 /CNW/ - Ontario's Financial Services Regulator, FSRA, has initiated enforcement action against Harold Gerstel (Gerstel), Harold the Mortgage Closer Inc. (HTMC), and Esther Gerstel Inc. (EGI).

FSRA alleges that Gerstel and HTMC are not suitable to be licensed under the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act). Gerstel contravened the Act by dealing in mortgages outside of his mortgage brokerage for remuneration, contrary to section 2(3) of the Act.

FSRA further alleges that EGI was carrying on business as a mortgage lender without being licensed as a mortgage brokerage or exempt from the requirement to be licensed, contrary to section 4(2) of the Act.

FSRA is proposing to refuse to renew the mortgage broker licence of Gerstel, to revoke the mortgage brokerage licence of HTMC, and to impose a compliance order on EGI. FSRA is also proposing to impose administrative penalties in the total amount of $60,000 against Gerstel and $150,000 against EGI. This enforcement action is supplementary to the enforcement action initiated on June 22, 2023.

Gerstel, HTMC and EGI requested a hearing before the Financial Services Tribunal about this proposal and about the proposal dated June 22, 2023. You may request copies of the Request for Hearing forms from the Financial Services Tribunal Registrar at: [email protected].

Learn more:

Access our enforcement database to see how FSRA is working to protect consumers through its monitoring and enforcement activities. 

For media inquiries:

Ashley Legassic
Acting Sr. Manager, Media Relations
Financial Services Regulatory Authority
C: 647-719-8426
Email: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario