FSRA Fines Former Toronto Mortgage Broker and Spouse for Violating Regulatory Rules

The Financial Services Regulatory Authority of Ontario (FSRA) has fined a prominent former Toronto mortgage broker and his wife a total of $210,000 for their involvement in an alleged mortgage scheme that exploited legal loopholes to bypass regulatory oversight.

FSRA issued administrative penalties against Harold Gerstel, owner of Harold the Jewellery Buyer, and his wife Esther Gerstel on Tuesday, April 21, 2026. The Financial Services Tribunal ordered Harold Gerstel to pay $60,000 across six penalties for violations of the Mortgage Brokerages, Lenders and Administrators Act. His wife, Esther Gerstel, was ordered to pay $150,000 in fines for her alleged contravention of provincial law.

The regulator stated that Harold Gerstel leveraged his professional credibility and his business, Harold the Mortgage Closer Inc. (HTMC), to target vulnerable consumers. Five of the six identified customers were drawn in by advertisements promising rapid mortgages for individuals with poor credit ratings. These clients were then diverted to Esther Gerstel Inc. (EGI), an unlicensed entity, where they were placed into high-cost mortgages managed by a lawyer, often without knowing that Esther Gerstel was the actual lender involved in the transaction.

Some clients eventually lost their homes due to the combination of 22 percent interest rates, various lender fees, and the short-term nature of the loans. In one specific instance, the tribunal found that the effective annual interest rates reached between 51 and 56 percent.

The case highlights ongoing concerns about unlicensed mortgage operations in Ontario, where regulators have reported a 50 percent increase in mortgage violations this year compared to the same period last year.