The Financial Services Regulatory Authority of Ontario has imposed six administrative monetary penalties totalling CAD 600,000 on Claire Drage, a former licensed mortgage broker in Guelph, Ontario, for a prolonged and extensive pattern of misconduct in mortgage dealing that exposed investors to significant losses. FSRA found that Drage brokered hundreds of mortgages and other loans for a group of real estate developers and raised more than $100 million from the investing public. While dealing in mortgages, she 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 under the Mortgage Brokerages, Lenders and Administrators Act, 2006. The real estate investment companies later became insolvent and were granted Companies’ Creditors Arrangement Act protection on January 23, 2024. FSRA issued the order after Drage did not request a hearing before the Financial Services Tribunal or contest FSRA’s proposal.
Financial Services Regulatory Authority of Ontario 2026-03-11
Financial Services Regulatory Authority of Ontario imposes CAD 600,000 in administrative penalties on former mortgage broker Claire Drage
The Financial Services Regulatory Authority of Ontario imposed administrative penalties totaling CAD 600,000 on Claire Drage, a former mortgage broker, for misconduct in mortgage dealings. Drage brokered over $100 million in mortgages without disclosing material risks or conflicts of interest, violating Ontario Regulation 187/08. The involved real estate companies later became insolvent, and Drage did not contest the FSRA's order.