Fraud Sanctions Shake Bridging Finance: Tribunal Slaps Executives with $27M Penalties.
In one of the largest and most significant fraud sanctions ever issued by the Ontario Capital Markets Tribunal, Bridging Finance executives have been hit with penalties exceeding $27 million and sweeping market bans. The ruling targets David Sharpe (CEO), Natasha Sharpe (CIO), and Andrew Mushore (CCO) following findings of fraud, obstruction, and misuse of investor funds (The Globe and Mail).
The Ruling
The Tribunal ordered the former executives to pay over $27 million in penalties, disgorgement, and costs, while also imposing permanent bans from Ontario’s capital markets for David and Natasha Sharpe. Mushore received a 10-year ban, reflecting his reduced role and cooperation with investigators. Regulators described David Sharpe’s conduct as “among the most egregious the Tribunal has ever encountered” (Advisor.ca).
The Rise and Fall of Bridging Finance
At its peak, Bridging Finance managed about $2.1 billion for 26,000 investors. In April 2021, allegations of fraud and mismanagement led to court action and the appointment of a receiver. Subsequent reports projected investor losses of nearly $1.3 billion, with recovery estimates ranging from 34% to 42% of capital (Investment Executive).
Fraud Schemes Identified
The Tribunal detailed several transactions that contributed to the collapse (Capital Markets Tribunal):
Payments from Sean McCoshen: David Sharpe received nearly $20 million tied to loans advanced by Bridging to companies linked to McCoshen.
Ninepoint Partners loan: About $40 million was diverted to help the Sharpes acquire a management interest in Ninepoint Partners LP.
Financing Gary Ng’s acquisition: Roughly $30 million was advanced to support financier Gary Ng’s purchase of 50% of Bridging Finance, including shares owned by Natasha Sharpe.
The Tribunal’s findings concluded that these transactions represented a serious misuse of investor funds and were material to the firm’s collapse (Wealth Professional Canada).
Tribunal’s Sanctions
Disgorgement Orders
- David Sharpe: $18,053,770.26
- David & Natasha Sharpe (jointly): $2,000,000
- Natasha Sharpe (individually): $750,000
Administrative Penalties
- David Sharpe: $3,600,000
- Natasha Sharpe: $1,950,000
- Andrew Mushore: $50,000
Costs Awarded
- David Sharpe: $784,648.64
- Natasha Sharpe: $422,503.10
Market Bans
- David and Natasha Sharpe: Permanent bans from Ontario’s capital markets
- Andrew Mushore: 10-year ban
Appeals, Bankruptcy Proceedings, and Enforcement Challenges
Both David and Natasha Sharpe have indicated they are appealing. David Sharpe filed a notice of appeal in July 2025, with proceedings ongoing (Investment Executive).
In parallel, the Ontario Securities Commission (OSC) has petitioned to place both into bankruptcy to improve prospects for asset recovery (OSC / Bloomberg) (Stockwatch).Enforcement remains a significant obstacle. According to the OSC’s 2023–2024 Annual Report, only 4.5% of monetary sanctions assessed that year were collected, underscoring the difficulty of securing restitution for investors (Mortgage Professional America).
Conclusion
The Tribunal’s decision closes the regulatory sanctions phase of the Bridging Finance saga, imposing some of the heaviest penalties in Canadian financial history. Yet for investors, true relief remains uncertain. Appeals, bankruptcy proceedings, and the OSC’s uphill battle to recover assets will determine whether the $27 million ruling translates into meaningful restitution.Among the broader misconduct findings were patterns of fraud, embezzlement, and forged signatures, illustrating the depth of governance failure that ultimately eroded investor confidence and trust in one of Canada’s largest private lending firms.
References
- Advisor.ca. (2025, June 17). Tribunal orders sanctions for Bridging Finance executives.
- Bloomberg. (2025, August 27). A private credit husband and wife duo faces bankruptcy push.
- Capital Markets Tribunal. (2025, June 17). Reasons and decision on sanctions and costs: Bridging Finance Inc.
- Investment Executive. (2025, June 17). Bridging execs hit with over $27 million in sanctions.
- Mortgage Professional America. (2025, June 18). Former Bridging Finance executives ordered to repay over $27M in investment fraud case.
- Stockwatch. (2025, August 28). OSC petitions bankruptcy for Bridging Finance executives.
- The Globe and Mail. (2025, June 17). Bridging Finance executives ordered to pay more than $27 million for fraud and obstruction.
- Wealth Professional Canada. (2025, June 18). Tribunal orders over $27 million in penalties for Bridging Finance fraud.
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