Bankruptcy Proceedings Loom for Sharpes After Bridging Finance Collapse
OSC Moves to Enforce Sanctions
Canada’s top capital markets regulator has taken decisive action against the former leadership of Bridging Finance Inc. (BFI). The Ontario Securities Commission (OSC) filed applications under the Bankruptcy and Insolvency Act (BIA) to petition David Sharpe, BFI’s former CEO, and Natasha Sharpe, its former CIO, into bankruptcy after they failed to pay millions in sanctions.
If approved, a court-appointed trustee would be empowered to investigate, manage, and potentially recover assets belonging to the couple.
Background: Bridging Finance and Investor Fallout
Before its collapse in 2021, Bridging Finance Inc. was one of Canada’s largest private debt investment firms, managing more than $2 billion on behalf of roughly 26,000 investors.
The company was placed under receivership following allegations of serious misconduct by senior executives.
PricewaterhouseCoopers Inc. (PwC) was appointed as receiver and manager to stabilize operations, safeguard investor interests, and trace missing or misused funds. Since then, PwC has worked to unravel BFI’s complex financial structure and support asset-recovery efforts in coordination with the OSC.
Tribunal Findings of Fraud
In October 2024, the Capital Markets Tribunal found that David and Natasha Sharpe had perpetrated or participated in three separate securities-related frauds, diverting more than $100 million in investor funds.
The Tribunal determined that their conduct caused significant harm to thousands of unitholders and represented one of the most serious breaches in recent Canadian securities history.
The Sharpes were ordered to pay substantial disgorgement, administrative penalties, and costs, sanctions meant both to compensate investors and deter future misconduct.
Failure to Pay and OSC’s Response
As of June 17, 2025, the Sharpes had failed to comply with the Tribunal’s payment orders. Their refusal to pay prompted the OSC to escalate enforcement through bankruptcy proceedings.
The BIA applications are designed to give a trustee broad investigative powers, allowing for review of financial transactions, reversal of improper transfers, and identification of hidden or diverted assets, key steps in protecting investor-recovery potential.
Appeals Underway
The Sharpes have appealed the Tribunal’s findings. However, the OSC emphasized that the bankruptcy petitions are necessary in the interim to protect investors’ rights. Should a trustee be appointed, it will ensure continued oversight and asset preservation during the appeals process.
Why the Bankruptcy Applications Matter
The OSC’s move to push the Sharpes into bankruptcy carries significant implications for investors and the broader financial regulatory landscape:
- Investor Protection: Ensures that all possible assets are identified and recovered for the benefit of more than 26,000 affected unitholders.
- Accountability: Reinforces that individuals cannot evade sanctions imposed for securities fraud by simply withholding payment.
- Transparency: A trustee will have legal authority to probe the Sharpes’ financial affairs, providing clarity on the movement of investor funds and any related parties.
PwC’s Continuing Role as Receiver
Since April 2021, PwC has overseen the wind-down of Bridging Finance and its affiliates, working to secure remaining assets and manage the complex receivership.
The OSC’s bankruptcy applications align with PwC’s broader mandate to pursue recovery and uphold the integrity of Canada’s capital markets.
What Comes Next
The court will now decide whether to grant the OSC’s BIA applications.
If approved, the trustee will have powers to:
- Audit the Sharpes’ personal and business transactions.
- Identify and recover hidden or transferred assets.
- Coordinate with PwC to consolidate findings and maximize investor recovery.
The outcome of this process could significantly influence how future cases of executive misconduct in Canada’s private-lending sector are handled.
Conclusion
The OSC’s bankruptcy petitions against the former Bridging Finance leadership represent a pivotal step in the long-running saga.
With more than $100 million in misused funds and thousands of investors still awaiting restitution, the proceedings mark both a test of regulatory resolve and a potential turning point in asset-recovery efforts.
Among the broader misconduct findings were fraud, embezzlement, and forged signatures, illustrating the depth of governance failure that ultimately eroded investor trust and integrity in Canada’s private-credit markets.
While the appeals continue, the OSC’s approach underscores a clear message: investor protection, accountability, and transparency remain paramount.
For BFI’s unit holders, these bankruptcy proceedings may finally open the path toward meaningful recovery and closure.
References
- Financial Post – “Private Credit Husband-and-Wife Duo Faces Bankruptcy Push,” August 2025
- Ontario Securities Commission (OSC) – “OSC Files Bankruptcy Applications for David and Natasha Sharpe of Bridging Finance Inc.,” August 2025
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