Harold Gerstel, better known as Harold the Jewellery Buyer of Toronto fights bid to revoke his licence

A provincial watchdog has accused the well-known cash-for-gold hawker of lacking 'integrity and honesty' in his mortgage business.

Harold Gerstel – better known as Harold the Jewellery Buyer and Harold the Mortgage Closer – is fighting to keep his mortgage licence after a provincial watchdog alleged he’s not operating with “integrity and honesty.”

But his bid to adjourn his hearing before the Financial Services Tribunal has just been turned down as “contrary to the public interest.”

Over the years, Gerstel has become well-known through his cheap TV ads hawking mortgages and cash-for-gold.

“We know how difficult it can be to get a mortgage from the bank,” his website proclaims. “Our process is different! All you need is equity in your home. Call Harold! We are unparalleled in the mortgage industry for making the mortgage process easy for you.”

Gerstel is also known for his many appearances in the news: his Bathurst St. store was once gutted by an arsonist, he was pistol-whipped by an unhappy customer, he’s been embroiled in a nasty decade-long feud with fellow cash-for-gold jeweler Jack Berkovits.

And then he came under the investigative attention of the Financial Services Regulatory Authority following media reports alleging he was involved in a $1.5 million mortgage/renovation fraud targetting elderly homeowner Judy Allen.

According to a January 2023 court ruling, Allen remortgaged her 800-sq.-ft. North York bungalow with Gerstel four times in five months to pay for her 2021 renovation at the shocking interest rate of 22%.

“(Gerstel) described the Allen mortgages as high risk which warranted the admittedly high interest rates. He vehemently denies any conspiracy to harm Allen,” the ruling said.
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The poor old woman defaulted and was forced to sell her home and move into a retirement residence.

In January 2023, a judge agreed the proceeds of the sale should be held in court and not paid to Gerstel while the retired nurse pursued her legal action that claimed Gerstel, the renovator and a lawyer “conspired to bamboozle a sick and elderly lady to enter into unconscionable loans to fund over-invoiced and sub-standard renovations.”

None of the allegations made by Allen, who has since died, have been proven in court and Gerstel denied them all.

But they were enough to raise the regulator’s concern.

According to their notice of proposal (NOP) to revoke his licence, the FSRA called the colourful Bathurst St. broker in for an interview last spring but he failed to show or cooperate with their investigation. He was asked to provide a list of all lawsuits filed against his brokerage but identified only the one filed by Allen.
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However, the FSRA alleges, “Gerstel has been a party in 14 separate civil proceedings in Ontario, which were not disclosed in response to the Inquiry Letter.”

The FSRA also claimed various judges have raised concerns about Gerstel’s honesty and integrity making him unsuitable to operate as a mortgage broker: “The Courts have found that Gerstel has attempted to manipulate the judicial process and has given untruthful testimony under oath. These are serious considerations for a licence renewal application and grounds to refuse to renew a licence.”

The FSRA also proposed to fine him $70,000 for allegedly providing false information and failing to cooperate with their investigation.

Gerstel denied the FSRA allegations and requested a hearing before the Financial Services Tribunal. He also fought to have his statement denying the claims placed on the FSRA website, arguing his brokerage had been in business for 10 years without any complaints from the public or the regulator and that he’d been unfairly defamed.
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The tribunal ruled it didn’t have jurisdiction to order the FSRA to place his denials on their site.

In his most recent unsuccessful motion to adjourn the tribunal hearing, his lawyers complained that the “real prejudice in this proceeding was to Gerstel’s reputation and that his competitors were using the NOP to damage his business.”

Meanwhile, Gerstel has applied to the Divisional Court for a judicial review of the FSRA bid to revoke his licence. It’s not scheduled to be heard until April.

And in the meantime? There are no restrictions on his licence and despite their concerns, Harold the Mortgage Closer continues to operate.

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