Collapsed $2 Billion Canada Private Credit Fund Bridging Finance Founder & CEO David Sharpe Found Guilty of Fraud & Issued Lifetime Ban Files Appeal Against Ontario Capital Markets Tribunal Decision for Significant Legal & Constitutional Concerns (Including Abuse of Process & Unlawful Public Disclosure of Testimony), Receiver PwC Files $1 Billion Lawsuit Against Auditor EY for Failing to Detect Fraud & Misstatements from 2014 to 2020
19th July | Hong Kong
Collapsed $2 billion Canada private credit fund Bridging Finance founder & CEO David Sharpe found guilty of fraud & issued lifetime ban, has filed an appeal against Ontario Capital Markets Tribunal decision for significant legal & constitutional concerns (including abuse of process & unlawful public disclosure of testimony). In 2025 June, Ontario Capital Markets Tribunal had ordered David Sharpe, his wife (Natasha Sharpe) & ex-Chief Compliance Officer (Andrew Mushore) to pay CAD 27 million in penalties & disgorgement, who were convicted in 2024 October. In 2025 July, Bridging Finance receiver PwC filed a $1 billion lawsuit against auditor EY for failing to detect fraud & misstatements from 2014 to 2020. Notice of Appeal (18/7/25): “David Sharpe, a First Nations economic leader, has filed a Notice of Appeal in the Divisional Court, challenging the Ontario Capital Markets Tribunal decision against him. The appeal raises significant legal and constitutional concerns, including abuse of process, breaches of the Charter of Rights and Freedoms, and unlawful public disclosure of compelled testimony. Mr. Sharpe, former CEO of Bridging Finance Inc. and past Chair of the First Nations University of Canada, did not participate in the hearing before the Tribunal. He took this position following the summary dismissal of his motion to stay proceedings, despite the previous determination by the Tribunal that OSC staff had unlawfully disclosed his confidential compelled evidence. The Notice of Appeal, filed on July 17, also challenges the constitutionality of section 17(6) of the Securities Act, a provision retroactively introduced after the unlawful disclosures to expand OSC powers.”
“ Collapsed $2 Billion Canada Private Credit Fund Bridging Finance Founder & CEO David Sharpe Found Guilty of Fraud & Issued Lifetime Ban Files Appeal Against Ontario Capital Markets Tribunal Decision for Significant Legal & Constitutional Concerns (Including Abuse of Process & Unlawful Public Disclosure of Testimony), Receiver PwC Files $1 Billion Lawsuit Against Auditor EY for Failing to Detect Fraud & Misstatements from 2014 to 2020 “
Ontario Capital Markets Tribunal (17/6/25): “In an earlier decision, the Tribunal decided that Bridging Finance Inc. and three of its senior employees – David Sharpe, its chief executive officer; Natasha Sharpe, its chief investment officer; and Andrew Mushore, its chief compliance officer – either carried out or participated in one or more frauds. The Tribunal also decided that the respondents interfered with the Commission’s investigation, some more than others. In this decision, the Tribunal decided what sanctions and costs it should order against David, Natasha and Mushore. The Commission did not ask for any sanctions against Bridging. The Tribunal decided that:
- David must pay an administrative penalty of $3,600,000 and is permanently banned from participating in Ontario’s capital markets. His fraudulent misconduct was very serious, it harmed investors, he was experienced in the financial services industry, and he manipulated and threatened others.
- Natasha must pay an administrative penalty of $1,950,000 and is permanently banned from participating in Ontario’s capital markets, except that after she pays that penalty, plus other amounts mentioned below, she can trade in certain registered accounts, such as an RRSP. While she was less involved in the frauds than David, she did have significant experience in the financial services industry and was in a position of authority where she could have stopped the misconduct but did not.
- Mushore must pay an administrative penalty of $50,000 and is banned from participating in Ontario’s capital markets for 10 years, except that after he pays that penalty, he can trade in certain registered accounts. The sanctions against Mushore are lower because of his inexperience, his vulnerability to manipulation by the Sharpes and his co-operation with the Commission and Bridging’s receiver.
The Tribunal also decided that David must disgorge (give up to the Commission) $18,053,770.26 and Natasha must disgorge $750,000. David and Natasha are also responsible for disgorging another $2,000,000 together. These figures represent amounts they obtained through their involvement with the frauds. Finally, the Tribunal decided that David must pay $784,648.64 in costs to the Commission and Natasha must pay $422,503.10. Mushore does not have to pay any costs since he cooperated with the Commission and did not contribute to the Commission’s costs in a significant way.”
Ontario Capital Markets (28/10/24): “In this enforcement proceeding, the OSC says that Bridging Finance Inc. and three of its senior employees – David Sharpe, its chief executive officer; Natasha Sharpe, its chief investment officer; and Andrew Mushore, its chief compliance officer – either carried out or participated in three frauds. Bridging set up and managed investment funds, which were meant to earn money by making loans to private borrowers. The OSC says that three sets of loans made from two of these funds involved fraud, and that the respondents did not properly respond to conflicts of interest that the loans presented. The OSC also says that the respondents interfered with its investigation. The Tribunal decided that David, Natasha and Mushore either carried out or participated in one or more frauds. David carried out the first fraud, in which Natasha participated, through loans to companies controlled by Sean McCoshen. Almost $20 million of the money loaned was paid to David and Natasha as kickbacks. David and Natasha carried out the second fraud, in which Mushore participated, through a loan to Bridging, disguised as a loan to companies controlled by Rishi Gautam. Bridging owned half of Ninepoint Partners, the entity that managed one of its funds, and it needed the money to buy the other half of Ninepoint from another entity with which Bridging had been co-managing the fund. Natasha carried out the third fraud, in which David participated, through loans to companies controlled by Gary Ng. The purpose of the loans was disguised. Ng used the loans to buy half of Bridging’s outstanding shares, including shares from Natasha, and to pay $1 million to the Sharpes. The Tribunal decided that the OSC did not prove that Bridging should be responsible for David’s and Natasha’s frauds. The Tribunal decided that the conflict of interest requirements that the OSC relied on apply only to registered firms – such as Bridging – and not to the Sharpes and Mushore. A conflict of interest happens where the interests of a registered firm are different than the interests of the firm’s client. Bridging failed to properly respond to the conflict of interest raised by the loans funding the Ninepoint transaction. David and Natasha were responsible for Bridging’s actions. With respect to the other two sets of loans, the OSC did not prove that Bridging should be responsible for the Sharpes’ conduct.
Lastly, the Tribunal decided that the respondents interfered with the OSC’s investigation:
- David and Natasha gave misleading answers to OSC investigators during the investigation;
- Bridging gave misleading information to the OSC, for which David and Natasha are responsible;
- Mushore participated in Bridging providing misleading information to the OSC;
- David tried to intimidate former Bridging employees who were co-operating with the court-appointed receiver over Bridging’s assets; and
- Natasha let David listen to her examination by the OSC’s investigators, which she was not allowed to do.
As a result of this decision, the Tribunal will hold a hearing to decide what sanctions and costs should be ordered against the respondents because of their conduct.”
Collapsed $2 Billion Canada Private Credit Fund Bridging Finance Receiver PwC Files $1 Billion Lawsuit Against Auditor EY for Failing to Detect Fraud & Misstatements from 2014 to 2020
11th July – Collapsed $2 billion Canada private credit fund Bridging Finance receiver PwC has filed a $1 billion lawsuit against auditor EY for failing to detect fraud & misstatements from 2014 to 2020.
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