FSRA takes enforcement action against Harold Gerstel, Harold the Mortgage Closer Inc. and Esther Gerstel Inc.

TORONTO, April 28, 2026 /CNW/ - The Financial Services Regulatory Authority of Ontario, FSRA has imposed administrative monetary penalties in the total amount of $60,000 against Harold Gerstel (Gerstel) and $150,000 against Esther Gerstel Inc. (EGI), and a compliance order restricting EGI from the business of mortgage lending, unless it complies with the law.

"Buying or refinancing a home is one of the biggest financial decisions most people will ever make, and they deserve to work with professionals they can trust," said Elissa Sinha, Director of Litigation and Enforcement at FSRA.

"FSRA will not hesitate to take action when borrowers are intentionally exposed to serious harm. The Tribunal's decision sends a clear message that mortgage agents, brokers and lenders cannot operate outside Ontario's licensing system and deny consumers the regulatory safeguards they are entitled to."

After a contested hearing, the Financial Services Tribunal (Tribunal) held that Gerstel and EGI failed to comply with mandatory regulatory obligations that protect borrowers and lenders. Despite being an experienced mortgage broker and a principal broker, Gerstel dealt in mortgages for remuneration outside his brokerage when he arranged mortgages for EGI, contrary to section 2(3) of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act). EGI carried on business as a private mortgage lender in Ontario while not being licensed or exempted from the requirement to be licensed, contrary to section 4(2) of the Act.

The Tribunal found that borrowers suffered significant harm due to the conduct of Gerstel and EGI and that they acted intentionally, recklessly, and received economic benefits.

Gerstel dealt in mortgages for remuneration with six borrowers who were not clients of his brokerage, Harold the Mortgage Closer Inc. (HTMC) and were denied the protections of the Act, including suitability assessment. Gerstel referred all six borrowers exclusively to EGI for private loans. Gerstel then dealt with the borrowers on behalf of EGI.

FSRA issued these orders as a result of the decision of the Financial Services Tribunal in Harold Gerstel, Harold the Mortgage Closer Inc. and Esther Gerstel Inc. v Ontario (CEO of FSRA).

FSRA previously revoked and refused the licences of Gerstel and HTMC and ordered them to pay administrative penalties of $70,000 for failing to cooperate with FSRA's investigation and providing false information to FSRA. A copy of the Tribunal's prior decision can be found at on Canlii's website. That decision is before the Court under judicial review.

Learn more:

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

For media inquiries:

Lilian Kim 
Sr. Media Relations Officer
Financial Services Regulatory Authority
[phone]
Email: [e-mail]

SOURCE Financial Services Regulatory Authority of Ontario