OSC seeks $1M fines, penalties for ex-Bridging Finance execs
BNN Bloomberg
The Ontario Securities Commission (OSC) is seeking a range of penalties against three former Bridging Finance Inc. executives amid formal allegations of defrauding investors out of millions of dollars, intimidating witnesses, and concealing their wrongdoing by obstructing the regulators’ investigation, according to statement of allegations released Thursday afternoon.
The Ontario Securities Commission (OSC) is seeking a range of penalties against three former Bridging Finance Inc. executives amid formal allegations of defrauding investors out of millions of dollars, intimidating witnesses, and concealing their wrongdoing by obstructing the regulators’ investigation, according to statement of allegations released Thursday afternoon.
OSC staff is asking the commission to impose fines of up to $1 million against David Sharpe, Natasha Sharpe, and Andrew Mushore — who each held senior executive roles at Toronto-based private lender Bridging Finance. The staff also wants all three of them to disgorge funds allegedly received through fraudulent activities, and to be barred from roles as directors and executives — or from acting as investment fund managers or promoters, among other penalties.
“The Sharpes were registrants and the most senior leaders at Bridging Finance Inc., which managed investment vehicles focused on making short-term loans to borrowers. Through their relationships with three borrowers and with the assistance of Bridging’s Chief Compliance Officer, Andrew Mushore, the Sharpes funnelled investor funds to themselves and Bridging, then concealed their wrongdoing from investors,” the securities regulator’s staff said in its statement of allegations.
In the filing, the OSC staff also allege that Mr. Sharpe, Bridging Finance’s former chief executive officer, also sent intimidating and “profanity-laden” texts and voicemails to employees at the firm, including Mushore, who were set to be interviewed by the regulator in connection with the investigation. According to the allegations, those communications “contained disparaging insults and threats of physical violence.”
The OSC also claimed that the Sharpes and Mushore made false and misleading statements to the regulator and instructed the firm’s employees to either alter or destroy company records tied to the investigation.
The OSC probe into Bridging Finance came to light almost a year ago, after the lender was rushed into receivership at the behest of the provincial securities regulator.
