Discover the Real Story at Bridging Finance

Bridging Finance Investors Closer to Payout as Court Rejects $213 Million Claim

The Sharpes were dealt another embarrassing blow in Ontario court as the rejection of a $213 million claim against the defunct Bridging Finance Inc. This clears the way for investors who lost money after the lender’s collapse to potentially recover some funds.

On October 6, 2026, Ontario Superior Court of Justice Justice Barbara Kimmel dismissed an appeal brought by CERIECO Canada Corp., which sought to recover $213 million, plus interest and expenses from the Bridging Income Fund. The claim was based on a loan guarantee that was allegedly provided by Natasha Sharpe in 2017. Natasha Sharpe was the company’s former CIO and was formally found to be a fraudster alongside her husband David Sharpe in 2024.

The ruling upholds an earlier determination that Sharpe lacked the authority to commit the investment fund to the guarantee. This means the fund cannot be held liable under that agreement, which carries some implications for investors who were left on the hook for Bridging’s mismanagement.

A $213 million guarantee without proper authorization

This decision traces back to August 2017. At the time, Natasha Sharpe signed a guarantee that required the Bridging Income Fund to cover loans provided by CERIECO to Mizrahi Commercial (The One) LP.

CERIECO passed on more than $200 million between 2017 and 2021 as funds for the construction of an 85-storey development in downtown Toronto, Ontario. The project eventually encountered financial difficulties and entered receivership in 2023, leaving CERIECO seeking repayment under the guarantee with Sharpe.

Unfortunately for CERIECO, PricewaterhouseCoopers rejected CERIECO’s claim in December 2023 as the receiver handling Bridging’s assets. CERIECO challenged PwC’s rejection through the court-supervised claims adjudication process. On January 7, 2026, claims officer Douglas Cunningham upheld the rejection, finding that Natasha Sharpe lacked the authority to execute the guarantee. This rejection has now been upheld again with Justice Kimmel finding no reversible errors in the claims officer’s decision.

Rejection opens door for distribution of money to Bridging investors

This decision marks a big moment for the Bridging Finance investors looking for some recompense more than five years after the lender went into receivership. Receiver PwC initially sought to distribute $491 million to investors in 2025. The claims by CERIECO prevented a approximately $170 million of that $491 million from being distributed.

The October ruling removes a major obstacle that kept those funds from being distributed.

With the case potentially closed, things can begin moving forward. Further distributions are still subject to the receivership process and other legal developments, so Bridging Investors won’t necessarily see an immediate windfall from this court decision.

This is a devastating blow for CERIECO, however. The company now finds itself out hundreds of millions of dollars. 

This isn’t a surprising turn, given the nature of the January 2026 rejection. The determination included several warning signs, such as the absence of a business justification for the investment fund to guarantee another company’s debts and the secrecy surrounding the arrangement.

As for the Sharpes, this adds another blemish to their record as Bridging Finance executives. It may also open the door for CERIECO to pursue Natasha Sharpe directly, adding to the family’s ongoing legal issues if separate legal grounds can be established.