IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, as amended (the “Act”), in particular sections 38 and 39;

AND IN THE MATTER OF Sabine Quattrociocchi and Diamond Capital Investments Inc.

MINUTES OF SETTLEMENT AND UNDERTAKING

PART I – INTRODUCTION

Sabine Quattrociocchi (“Quattrociocchi”) was licensed as a level 2 mortgage agent under the Act (licence # M17000871). Quattrociocchi was first licensed with FSRA on April 3, 2017, and her licence was set to expire on March 31, 2024.
Quattrociocchi applied to renew her licence on March 8, 2024, but withdrew the renewal application on May 13, 2024. Her licence expired and she remains unlicensed with FSRA.
Diamond Capital Investments Inc. (“Diamond Capital”) is a corporation registered in Ontario. Quattrociocchi owns Diamond Capital. She is the sole director of Diamond Capital and was the sole director during the relevant time period. Quattrociocchi was also the sole signing authority on the bank account of Diamond Capital.
On September 17, 2021, the Director, Litigation and Enforcement (the “Director”), by delegated authority from the Chief Executive Officer (“CEO”) of the Financial Services Regulatory Authority of Ontario (“FSRA”), issued a Notice of Proposal in respect of Quattrociocchi (“NOP 1”).
Quattrociocchi disputed the allegations and on September 27, 2021, requested a hearing before the Financial Services Tribunal (the “Tribunal”) in respect of NOP 1.
On June 19, 2024, the Director issued a second Notice of Proposal in respect of Quattrociocchi and Diamond Capital (“NOP 2”).
Quattrociocchi and Diamond Capital disputed the allegations and on July 5, 2024, requested a hearing before the Tribunal in respect of NOP 2.
At a Pre-Hearing Conference on December 9, 2024, the Tribunal consolidated NOP 1 and NOP 2 into a single proceeding.
Quattrociocchi, Diamond Capital and the Director, by delegated authority from the CEO, (collectively the “Parties”) wish to resolve this matter on consent and without a hearing before the Tribunal.

PART II – AGREED FACTS

(a) Non-Disclosure on Licensing Applications

Quattrociocchi failed to disclose requested information on her 2021, 2022 and 2023 licence renewal applications to FSRA.
On her 2021 application, Quattrociocchi did not disclose one civil litigation matter that she was aware of. She also did not disclose a complaint that had been made against her to FSRA.
On her 2022 and 2023 applications, Quattrociocchi disclosed some civil litigation while not disclosing some other civil litigation that she was involved in. She again did not disclose the same complaint to FSRA that she had not disclosed in 2021.

(b) Dealing in Mortgages

IC

In 2018, Quattrociocchi dealt in mortgages by arranging a mortgage on IC’s property. At the time, Quattrociocchi was either not licensed or was operating outside of her brokerage.
Quattrociocchi received fees for the mortgage transactions she arranged.

PE

Quattrociocchi arranged mortgages on two properties owned by PE. The mortgages were arranged in early 2017, while Quattrociocchi was unlicensed, and in January 2018, when Quattrociocchi was licensed.
In February and March 2017, Quattrociocchi arranged six-month, interest-only private first and second mortgages for PE. For the first mortgage, Quattrociocchi, through Diamond Capital, received a fee of $5,960. These mortgages were brokered while Quattrociocchi was unlicensed.
In January 2018, Quattrociocchi arranged another second mortgage for PE’s, outside her brokerage.

(c) Diamond Capital’s Unlicensed Mortgage Administration

Diamond Capital has never been licensed as a mortgage administrator.
Between May 1, 2017, and July 29, 2018, Diamond Capital received bulk mortgage interest payments from MLF, a law firm, and then made separate, monthly mortgage interest payments to lenders in at least 9 instances.
In general, MLF would pay Diamond Capital in one or two bulk payments. Subsequently, Diamond Capital would pay out interest-only payments to the mortgage lenders in monthly installments by cheque that totalled the amount received from MLF on closing as an interest reserve.
The memos on the outgoing cheques from Diamond Capital reflected the name of the borrowers or the property address. The cheques are signed by Quattrociocchi.

PART III – NON-COMPLIANCE WITH THE ACT

By engaging in the conduct described above in Part II, Quattrociocchi admits and acknowledges that she breached the Act as follows:
1. Dealing in mortgages without a licence or while not acting on behalf of a mortgage brokerage contrary to section 2(3) of the Act on two occasions; and
2. Providing false or misleading information to the Chief Executive Officer contrary to section 45 of the Act on two occasions.
By engaging in the conduct described above in Part II, Diamond Capital admits and acknowledges that it breached the Act by carrying on the business of administering mortgages without a licence or a valid exemption contrary to section 5(2) of the Act.

PART IV – TERMS OF SETTLEMENT

Quattrociocchi and Diamond Capital admit the facts contained in Part II of these Minutes of Settlement and Undertaking (“Minutes”).
Quattrociocchi and Diamond Capital acknowledge and agree that they have been given the opportunity to seek independent legal advice and have done so (or have waived the right to do so) and are entering into these Minutes voluntarily, understanding the consequences of doing so.
Quattrociocchi and Diamond Capital acknowledge that these Minutes are an undertaking within the meaning of the Act, and that failure to comply may result in immediate regulatory action including, but not limited to, the issuance of a Notice of Proposal to revoke the licence, a Notice of Proposal to impose an administrative penalty, or a prosecution under the Provincial Offences Act.

(a) Issuance of Order

Quattrociocchi and Diamond Capital acknowledge that, upon execution of these Minutes by all Parties, the order attached as Schedule “A” to these Minutes (the “Order”) will be issued, pursuant to which:
1. Quattrociocchi will pay four administrative penalties, totalling $30,000, as follows:
  1. two administrative penalties of $10,000 each for dealing in mortgages without a licence or while not acting on behalf of a mortgage brokerage contrary to section 2(3) of the Act; and
  2. two administrative penalties of $5,000 each for providing false or misleading information to the Chief Executive Officer contrary to section 45 of the Act; and
2. Diamond Capital will pay an administrative penalty of $20,000 for carrying on the business of administering mortgages without a licence or a valid exemption contrary to section 5(2) of the Act.
In addition, Quattrociocchi undertakes not to reapply for a mortgage agent or broker licence for one year from the date of the Order.
Quattrociocchi undertakes not to own, directly or beneficially, or to control, directly or indirectly, any part of a licensed Ontario mortgage brokerage for one year from the date of the Order.
Quattrociocchi acknowledges that, notwithstanding paragraph 29, 30, and 41(iii) of these Minutes, the facts in Part II of these Minutes may be considered for the purposes of assessing her suitability, or the suitability of any entity she is affiliated with, on any future applications for a licence under the Act or otherwise with FSRA.

(b) Process for Execution of Settlement

Quattrociocchi and Diamond Capital acknowledge that these Minutes are not binding on the Director until signed by the Director.
These Minutes may be executed in counterparts, and may be executed and delivered by facsimile or e-mail, and all such counterparts and facsimiles or e-mails, as applicable, shall together constitute one and the same agreement.
Upon receiving an executed copy of these Minutes from FSRA, Quattrociocchi and Diamond Capital will withdraw their Request for Hearings (Form 1s) in respect of the NOP before the Tribunal by completing a Withdrawal/Discontinuance (Form 5) and filing it with the Registrar at the Tribunal within two (2) business days.
Upon confirmation from the Tribunal that the Request for Hearing has been withdrawn and the hearing has been cancelled, the Parties agree that the Director will issue an Order in the form attached as Schedule “A” to these Minutes.
The Parties accept and understand that these Minutes and any rights within the Minutes shall enure to the Parties and to any successors or assigns of the Parties.

(c) Disclosure of Minutes and Order

The Parties will keep the terms of these Minutes and the Order confidential until the Order is issued, except that:
1. The Director shall be permitted to disclose the Minutes and the Order within FSRA; and
2. The Parties shall be permitted to inform the Financial Services Tribunal.
If any of the Parties do not sign these Minutes or the Director does not issue the Order:
1. These Minutes, the Order, and all related discussions and negotiations will be without prejudice to FSRA, Quattrociocchi and Diamond Capital; and
2. FSRA, Quattrociocchi and Diamond Capital will each be entitled to all available proceedings, remedies and challenges, including proceeding to a hearing of the allegations contained in the NOP 1 and NOP 2. Any proceedings, remedies and challenges will not be affected by these Minutes, the Order, or any related discussions or negotiations.
Upon issuance of the Order:
1. Quattrociocchi and Diamond Capital agree that these Minutes and the Order form part of their administrative record for the purposes of any future licensing decision or as an aggravating factor in respect of a future administrative penalty or prosecution against them or any affiliated entities;
2. Quattrociocchi and Diamond Capital acknowledge that these Minutes and the Order are public and will be published by FSRA on its public website (or that of its successor) along with a press release that summarizes these Minutes and the Order; and
3. The Parties agree not to make representations to any member of the public or media or in a public forum that are inconsistent with these Minutes or the Order.

(d) Further Proceedings

Whether or not the Order is issued, Quattrociocchi and Diamond Capital will not use, in any proceeding, these Minutes or the negotiation or process of approval of these Minutes as the basis for any attack on FSRA’s jurisdiction, alleged bias, alleged unfairness, or any other remedies or challenges that may be available.
Upon issuance of the Order:
1. Quattrociocchi and Diamond Capital waive all rights to a hearing before the Tribunal regarding NOP 1 and NOP 2;
2. Quattrociocchi and Diamond Capital waive all rights to a judicial review or appeal of the Order;
3. The Director agrees that FSRA will not take any further proceedings against Quattrociocchi or Diamond Capital arising solely from the facts contained in Part II of these Minutes, unless facts not disclosed by Quattrociocchi or Diamond Capital come to the attention of FSRA that are materially different from those contained in Part II of these Minutes or if Quattrociocchi or Diamond Capital fail to comply with any term in the Order; and
4. Quattrociocchi and Diamond Capital agree that should they fail to comply with any term in these Minutes or the Order, FSRA is entitled to bring any proceedings available to it.

DATED at Vaughan, Ontario, December 10, 2025

Original signed by

Sabine Quattrociocchi
On her own behalf and as an agent of Diamond Capital Investments Inc.

DATED at Vaughan, Ontario, December 10, 2025

Original signed by

May Cindepilla Longara
Name of Witness

DATED at Toronto, Ontario January 15, 2026.

Original signed by

Elissa Sinha
Director, Litigation and Enforcement
Financial Services Regulatory Authority of Ontario

By delegated authority from the Chief Executive Officer

APPENDIX A

IN THE MATTER OF the Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c.29, as amended (the “Act”), in particular sections 38 and 39;

AND IN THE MATTER OF Sabine Quattrociocchi and Diamond Capital Investments Inc.

ORDER TO IMPOSE ADMINISTRATIVE PENALTIES

Sabine Quattrociocchi (“Quattrociocchi”) was licensed as a level 2 mortgage agent (licence # M17000871) under the Act. She withdrew her application for renewal in May 2024, and is no longer licensed under the Act.

On September 17, 2021, by delegated authority from the Chief Executive Officer of the Financial Services Regulatory Authority of Ontario (the “Chief Executive Officer”), the Director, Litigation and Enforcement (the “Director”) issued a Notice of Proposal to suspend Quattrociocchi’s licence for six months and to impose an administrative penalty on Quattrociocchi.

A request for Hearing (Form 1), dated September 27, 2021, was delivered to the Financial Services Tribunal (the “Tribunal”) in accordance with section 39(5) of the Act respecting the Notice of Proposal.

On June 19, 2024, by delegated authority from the Chief Executive Officer, the Director issued another Notice of Proposal. This second Notice of Proposal proposed to impose administrative penalties on Quattrociocchi and a company that she owns, Diamond Capital Investments Inc. (“Diamond Capital"). Diamond Capital has never been licensed under the Act.

Requests for Hearing (Form 1s), dated July 5, 2024, were delivered to the Tribunal. The Tribunal joined the matters with the Notice of Proposal from 2021.

On [date], Quattrociocchi and Diamond Capital withdrew their Requests for Hearing, and, on [date], the Tribunal closed its file in respect of this matter.

This order is made pursuant to a settlement entered into by Quattrociocchi, Diamond Capital and the Director. Therefore, the Director, Litigation and Enforcement, by delegated authority from the Chief Executive Officer, makes the following orders.

ORDER

Four administrative penalties in the total amount of $30,000 are hereby imposed on Sabine Quattrociocchi (“Quattrociocchi”), for the reasons set out in the Minutes of Settlement dated [date].

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Quattrociocchi with information as to where and how to pay the administrative penalties. Quattrociocchi must pay the administrative penalties no later than thirty (30) days after the date of this Order or as otherwise agreed on.

If Quattrociocchi fails to pay the administrative penalties in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario.

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

ORDER

An administrative penalty of $20,000 is hereby imposed on Diamond Capital Investments Inc. (“Diamond Capital”), for the reasons set out in the Minutes of Settlement dated [date].

TAKE NOTICE THAT the Financial Services Regulatory Authority of Ontario will deliver an invoice to Diamond Capital with information as to where and how to pay the administrative penalties. Diamond Capital must pay the administrative penalties no later than thirty (30) days after the date of this Order or as otherwise agreed on.

If Diamond Capital fails to pay the administrative penalties in accordance with the terms of this Order, the Chief Executive Officer may file the Order with the Superior Court of Justice and the Order may be enforced as if it were an order of the court. An administrative penalty that is not paid in accordance with the terms of the order imposing the penalty is a debt due to the Crown and is enforceable as such.

DATED at Toronto, Ontario,

Original signed by

Elissa Sinha
Director, Litigation and Enforcement

By delegated authority from the Chief Executive Officer

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