Decades of trust undone by internal betrayal, tribunal says
The Ontario Capital Markets Tribunal has ordered former Bridging Finance Inc. executives David and Natasha Sharpe, along with ex-chief compliance officer Andrew Mushore, to pay more than $27 million in penalties following their convictions for investment fraud in October 2024.
The penalties, announced Wednesday, stem from a fraudulent scheme that misappropriated investor funds while Bridging managed $2.09 billion on behalf of 26,000 Canadians. Nearly $1.3 billion was lost before the private lender was placed in receivership in 2021.
Disgorgement and fines issued
David Sharpe was ordered to pay $3.6 million in administrative penalties and to disgorge $18 million received through the fraud. Natasha Sharpe must pay $1.95 million in penalties and return more than $2.7 million. Mushore, who played a lesser role, was fined $50,000.
The Sharpes are also responsible for $784,648.64 and $422,503.10 respectively to cover the costs of the Ontario Securities Commission (OSC) investigation. All three are permanently banned from participating in Ontario capital markets.
The tribunal described David Sharpe’s misconduct as “among the most serious frauds to come before the Tribunal,” citing his decades of industry experience and role in bolstering investor trust. “David’s background makes his conduct particularly galling,” the decision read.
Sharpe worked in the financial-services industry for decades, including a period overseeing the investigative division of a self-regulatory organization that was later integrated into the national investment regulatory body in 2023.
Fraudulent transactions and kickbacks
The OSC’s investigation focused on three major sets of loans. These included kickbacks totalling $20 million from loans connected to businessman Sean McCoshen, who later filed for bankruptcy citing $222 million in debt. McCoshen is linked to over $500 million in Bridging loans.
Another transaction involved a $40 million loan authorized by the Sharpes, who redirected the funds to themselves to repurchase Ninepoint Partners LP’s stake in Bridging without informing the client. The third loan set saw $30 million diverted to businessman Gary Ng, who used the money to acquire a 50% ownership in Bridging.
Appeal and collection concerns
David Sharpe’s lawyer, Alistair Crawley, stated that his client would appeal, citing concerns about the fairness of the process. David Sharpe did not attend the April hearings. Natasha Sharpe appeared but failed to provide adequate evidence of financial hardship despite claiming inability to pay.
The OSC continues to face difficulties in collecting fines. In its 2024 annual report, it reported a collection rate of just 4.5%.
The tribunal’s penalties in this case are among the largest ever issued in a single OSC enforcement action.
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