OSC seeks to extend cease trade in BFI case

Enforcement staff at the Ontario Securities Commission (OSC) are seeking to extend a temporary cease trade order against Bridging Finance Inc. (BFI).

The OSC will hold a hearing on May 12 to consider an application from OSC staff to extend the order issued on April 30 against BFI and its various investment vehicles for three months (until Aug. 12), while it continues its investigation into the firm.

The temporary order is due to expire on May 15.

In its application, OSC staff said they’re investigating whether BFI and certain executives engaged in fraudulent conduct, made misstatements to the regulator’s staff and failed to deal fairly with its clients, among other possible misconduct.

Among other things, the OSC said that the investigation has found evidence that the firm may have misappropriated $35 million from its investment vehicles to complete an acquisition for its own benefit.

At this point, the regulator has not made any enforcement allegations in the case, and no wrongdoing has been proven.

Last week, the OSC obtained a court order appointing PricewaterhouseCoopers (PwC) as BFI’s receiver.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.