The tribunal found Gerstel’s evidence “argumentative, evasive and manipulative” and said his testimony “on a number of key points and, generally, [was] not… truthful, credible or reliable.”
Gerstel, who previously told CTV News Toronto “we did not cause them harm” and that borrowers “had very bad credit” and could not obtain funds elsewhere, has indicated he intends to appeal.
Pattern of FSRA enforcement on unlicensed and off‑book dealing
The ruling followed an earlier tribunal decision that revoked HTMC’s brokerage licence and refused to renew Gerstel’s personal broker licence, with a separate $70,000 in penalties now under appeal.
The latest order also imposed six $10,000 penalties on Gerstel and six $25,000 penalties on EGI, and directed the Financial Services Regulatory Authority of Ontario (FSRA) to issue a permanent cease‑and‑desist order against EGI’s mortgage‑lending activities.
The tribunal said Gerstel’s conduct was “intentional and reckless and was designed to achieve the maximum economic benefit from the interest rates and lender’s fees charged to the Borrowers, none of whom were in a financial position to refuse.”