FSRA imposes $600,000 in penalties on Claire Drage

USA - English

TORONTO, March 11, 2026 /CNW/ - The Financial Services Regulatory Authority of Ontario, FSRA, has imposed six administrative monetary penalties in the total amount of $600,000 against Claire Drage (Drage), formerly a licensed mortgage broker in Guelph, Ontario.

FSRA determined that Drage engaged in a prolonged and extensive pattern of misconduct, exposed investors to significant losses, failed to mitigate those losses, and derived significant economic benefit from her contraventions.

"Consumer protection is paramount and licensed mortgage brokers must comply with regulatory requirements," said Elissa Sinha, Director of Enforcement at FSRA. "FSRA will not hesitate to sanction licensees who expose consumers to harm."

Drage brokered hundreds of mortgages and other loans for a group of real estate developers, raising over $100 million dollars from the investing public.

While dealing in mortgages, Drage failed to disclose material risks, conflicts of interest and accurate valuations, failed to comply with other disclosure requirements, failed to take reasonable steps to ensure mortgages were suitable, and failed to address inaccuracies in mortgage applications, contrary to section 3 of Ontario Regulation 187/08 of the Mortgage Brokerages, Lenders and Administrators Act, 2006 (Act).

The real estate investment companies became insolvent and were granted protection under the Companies' Creditors Arrangement Act ("CCAA") on January 23, 2024, exposing investors to risk of loss.

FSRA issued this order as Drage did not request a hearing before the Financial Services Tribunal or contest FSRA's proposal.

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: [email protected]

SOURCE Financial Services Regulatory Authority of Ontario