PAYBACK: Bridging Finance investors finally start getting (some) money back
Some good news has finally arrived regarding Bridging Finance, Inc.
The defunct private lender has been in receivership since April 2021 but investors and others who were owed money from Bridging have been left in limbo for years. This comes despite regular defeats or embarrassments in court for former BFI leadership including David and Natasha Sharpe, and Gary Ng.
That’s finally started to change, though. Starting in May 2026, Bridging investors that lost money due to the company’s collapse are starting to see money being returned to them. There are still many questions about this process, however, including how much money they’re going to see and who is actually getting it.
OSC approves distribution to scammed Bridging Finance investors
The Ontario Superior Court of Justice approved an initial distribution of $321 million to investors in Bridging’s funds. The payment represents 19.6% of the $1.6 billion that investors originally contributed.
According to a notice issued by PricewaterhouseCoopers, which is serving as receiver for BFI, most of the distribution will be processed through Fundserv. Payments will be distributed via wire transfers to investment dealers whose clients hold units in Bridging funds. Once these dealers receive the money, it is their responsibility to distribute the money to individual investors based on Bridging’s unitholder records.
Transfers to investment dealers began on May 6, though payments arrived after that date. Investors who purchased their holdings outside the Fundserv system received direct payments throughout the week of May 12.
While $321 million is no small sum, the total initial distribution amounts to less than 20% of the money invested across all Bridging funds. In similar cases, recovery rates vary significantly. Traditionally, recovery lands at around 40%.
The recovery rate is much lower for those who invested into the flagship Bridging Income Fund and the Bridging Income Fund RSP. Those investors are initially receiving only 2.7% and 3.5%, respectively.
The lower payments are the result of continuing litigation involving $221 million that has been withheld from the initial distribution. That $221 million will be on the line in a court case that is set to be heard in November 2026. Depending on the judge’s decision, additional money could eventually be released to investors.
Further distributions may also be possible as PwC continues to recover outstanding loans and pursue other litigation connected to the receivership. PwC is actively going after David and Natasha Sharpe in court regarding a Liechtenstein-based trust that is allegedly being used to stash money that was illegally obtained by the Sharpes through their mismanagement of Bridging Finance.
It is currently uncertain what the final amount will be, due to the numerous pending legal cases.
Exchange rate set to be a factor in Bridging payouts
Investors from across the United States and Canada invested in Bridging Finance, and returns will vary widely due to foreign exchange shifts. Specifically, the Canadian dollar is much weaker than the United States dollar in 2026 relative to previous years.
Investors who purchased United States dollar-denominated funds will receive their distributions in American dollars.
The Canadian dollar declined by roughly 11% between the date Bridging entered receivership and the date the funds became available for distribution. The available money is set to be converted back into American dollars, which means the weaker Canadian dollar will adversely impact the repayment for Canadian investors.
While this marks a major moment in the Bridging Finance scandal, the case is far from over and the receivership will continue on. Significant uncertainty remains about how much money can be recovered from here. Regardless, investors are likely to only get back a fraction of what they lost.
