Harold the Jewellery Buyer and wife lose appeal of $210K fine, ordered to pay $35K fees

The Financial Services Regulatory Authority of Ontario logo is shown. (Financial Services Regulatory Authority of Ontario)

A former mortgage broker and his wife will not only have to pay the $210,000 fine issued by the Financial Services Regulatory Authority of Ontario (FSRA) for an alleged mortgage “scheme” but also have to cover up to $35,000 in fees related to the case.

Harold Gerstel, known to many as “Harold the Jewellery Buyer,” and his wife, Esther, requested that the Financial Services Tribunal review the FSRA’s April decision, but last week, the appeal was denied.

“The Applicants have failed to attach to their request for review any documents that support their request or an affidavit setting out the facts they rely on. As such, there is no evidence (and by extension no new evidence) before the Tribunal on the review,” the May 20 decision read.

In April, Gerstel was ordered to pay six administrative penalties of $10,000 each for allegedly violating the Mortgage Brokerages, Lenders and Administrators Act.

His wife, Esther Gerstel, was also hit with six fines of $25,000 each for her alleged contravention of Ontario law.

According to the FSRA, the couple allegedly used a loophole to avoid oversight, causing clients “serious harm” as a result.

Adjudicators said Gerstel improperly carried out his mortgage business, using his credibility as a licensed broker through his business, Harold the Mortgage Closer Inc. (HTMC), which had its licence stripped in 2025, to advertise to “vulnerable” consumers who agreed to mortgages with “extremely” high interest rates and fees.

The FSRA also noted that borrowers who were influenced by Gerstel’s ads, which promised quick mortgages to those with bad credit, would then be redirected to Gerstel’s wife’s company, Esther Gerstel Inc. (EGI), which was not licensed, and enrolled in high-cost mortgages processed by legal counsel.

According to the ruling, in some cases, customers did not know that Esther, Harold’s wife, would be the lender.

In one instance, the effective annual interest rates on one customer’s mortgage were between 51 and 56 per cent.

Procedural costs

In a separate ruling on May 19, the tribunal ordered the Gerstels to pay the FSRA $35,231 in procedural costs related to the April ruling.

The fees were broken down into three sections:

• $5,625 with respect to the Delay Motion;
• $15,206 with respect to the Production Motion; and
• $14,400 with respect to the Limitation Motion.

According to the decision, the fees are due by June 19.

With files from Phil Tsekouras