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Unraveling the Allegations of Fraud and Misappropriation of Funds at Bridging Finance Inc.

The Ontario Securities Commission (OSC) has leveled some serious allegations against Bridging Finance Inc., a Toronto-based investment management firm overseeing $2 billion in assets under management. The regulatory body asserts that the individuals behind Bridging Finance have committed fraud, misappropriated funds, made misleading or untrue statements, and obstructed investigators during the process.

According to the OSC’s 16-page statement of allegations, the sharp accusations include claims that the individuals at the helm of Bridging Finance, David and Natasha Sharpe, defrauded institutional and retail investors out of millions of dollars through deception and dishonesty. The OSC maintains that they exploited their positions of trust for personal gain.

In a compelling twist, one of the accused individuals, David Sharpe, is a former regulator, having served as the director of investigations at the Mutual Fund Dealers Association between 2005 and 2009. The OSC also claims that they, along with Bridging’s Chief Compliance Officer, Andrew Mushore, allegedly funneled investor funds to themselves and Bridging while concealing their actions from investors.

The OSC’s investigation was made public last year when it sought court intervention to place Bridging Finance under receivership, citing the need to sustain the best interests of stakeholders and preserve the integrity of Ontario’s capital markets. Subsequent investigations revealed questionable related-party transactions and suspicious movements of funds to personal bank accounts.

The OSC also discovered that three former executives, including David and Natasha Sharpe, have engaged in fraudulent activities including the forging of documents and wrongfully implicating others in their fraudulent schemes.

The matter remains under investigation, and the legal proceedings are ongoing. The allegations put forth by the OSC against Bridging Finance Inc. have attracted widespread attention and are emblematic of the crucial role played by regulatory bodies in maintaining the integrity of the financial markets.

This article serves to elucidate on the serious allegations brought against Bridging Finance Inc. by the OSC, shedding light on a significant legal and financial dispute commanding attention within the Canadian investment landscape.

References:

https://financialpost.com/fp-finance/osc-alleges-fraud-misappropriation-of-funds-at-bridging-finance