Case highlights FSRA’s hard line on undisclosed risks and unlicensed activity
Ontario’s financial services regulator has ordered former mortgage agent Sabine Quattrociocchi and her company Diamond Capital Investments Inc. to pay a combined $50,000 in administrative penalties after finding repeated breaches of provincial mortgage brokering rules.
According to the Financial Services Regulatory Authority of Ontario (FSRA), Quattrociocchi dealt in mortgages while unlicensed or outside her brokerage, and failed to disclose litigation and a complaint on multiple licence renewal applications. She also provided false or misleading information to the regulator.
Diamond Capital, which has never been licensed as a mortgage administrator, received bulk interest payments and redistributed them to lenders in at least nine instances between 2017 and 2018, conduct FSRA said amounted to unlicensed mortgage administration.
“By engaging in the conduct described above, Quattrociocchi admits and acknowledges that she breached the Act” by twice dealing in mortgages without proper authorization and twice providing false or misleading information to the chief executive officer, the settlement said.
FSRA also found that Diamond Capital “breached the Act by carrying on the business of administering mortgages without a licence or a valid exemption,” with cheques to lenders signed by Quattrociocchi and memos referencing borrowers or property addresses.
Under the minutes of settlement, Quattrociocchi agreed to four administrative penalties totaling $30,000, while Diamond Capital accepted a $20,000 penalty. She undertook not to reapply for a mortgage agent or broker licence, or to own or control any part of a licensed Ontario brokerage, for one year from the date of the order.
FSRA said its orders flowed from a long‑running enforcement file that began with a 2021 notice of proposal to suspend Quattrociocchi’s licence and continued with a 2024 notice naming both her and Diamond Capital.
A consolidated tribunal proceeding ended after the respondents withdrew their hearing requests in January 2026.
Regulatory scrutiny of private and alternative lending has already been rising. FSRA previously imposed $430,000 in penalties, revoked the licence of Mortgage Bridge Canada and sanctioned multiple individuals for unlicensed activities and unsuitable, high‑fee mortgages aimed at vulnerable borrowers.
Additionally, the regulator recently suspended the licence of mortgage agent Chanderkant Jindal after finding he submitted forged insurance applications and later misled regulators about his conduct and licensing status.
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