The Financial Services Regulatory Authority of Ontario (FSRA) has imposed six administrative monetary penalties totaling $600,000 against Claire Drage, a former mortgage broker in Guelph, Ontario.
In a press statement, FSRA accused Drage of engaging 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.”
While Drage brokered hundreds of mortgages and other loans for a group of real estate developers, raising over $100 million dollars, FRSA said she also engaged in multiple violations of Ontario provincial law including the failure to disclose material risks, conflicts of interest and accurate valuations, a lack of compliance with other disclosure requirements, and a failure to ensure the mortgages were suitable and the applications carried accurate information.
The real estate investment companies involved in Drage’s input became insolvent and were granted protection under the Companies’ Creditors Arrangement Act in January 2024, exposing investors to risk of loss.
“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.”
FSRA’s penalties were issued after Drage declined to request a hearing before the Financial Services Tribunal and did not contest FSRA’s proposed punishment.
Photo courtesy of Claire Drage’s X account
