OSC Seeks $1M Fines and Penalties for Ex-Bridging Finance Executives
The Ontario Securities Commission (OSC) has made serious allegations against three former executives of Bridging Finance Inc., relating to defrauding investors, obstructing the regulators’ investigation, and intimidating witnesses. The OSC staff is seeking penalties which include fines of up to $1 million against David Sharpe, Natasha Sharpe, and Andrew Mushore, all of whom held high-level positions at the Toronto-based private lender.
Allegations and Actions by OSC Staff
Fraudulent Activities
The OSC alleges that the Sharpe couple and Mushore funneled investor funds to themselves and Bridging Finance, concealing their actions from investors and obstructing the investigation.
The Ontario Securities Commission (OSC) has taken an unprecedented step by making formal allegations against three former executives of Bridging Finance Inc., accusing them of forging documents and wrongfully implicating others in their fraudulent activities.
Intimidation and Obstruction
Mr. Sharpe, the former CEO, is accused of sending intimidating and profanity-laden communications to employees who were set to be interviewed by the regulator, containing disparaging insults and threats of physical violence.
False Statements and Destruction of Records
The OSC staff also accuses the executives of making false and misleading statements to the regulator and instructing employees to alter or destroy company records related to the investigation.
Background of the Investigation
The OSC’s probe into Bridging Finance began nearly a year ago when the lender was forced into receivership. Allegations emerged, including the misappropriation of $35 million from investment funds and improper dealings with key clients, leading to the OSC’s in-depth investigation.
Legal Responses and Court Proceedings
Dismissal of Complaint
After the OSC dismissed Mr. Sharpe’s complaint about the investigation, his lawyer stated his intention to challenge the decision and to defend against any potential proceeding.
Lack of Response
Lawyers representing Ms. Sharpe and Andrew Mushore did not respond to requests for comment.
Court Ruling and Liquidation
The recent court ruling approved the liquidation of Bridging Finance, with PricewaterhouseCoopers Inc. as the court-appointed monitor, warning investors stand to lose over $1 billion in the process.
The OSC is seeking a range of penalties against the former executives, including fines, disgorgement of funds, and barring them from roles as directors and executives, investment fund managers, or promoters. This case highlights the serious consequences of alleged financial misconduct, with potential widespread implications for both the accused individuals and the investors affected by the situation.
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