David Sharpe, former CEO of collapsed Canadian private credit manager Bridging Finance, has launched an appeal against a ruling by the Ontario Securities Commission (OSC) that found he engaged in fraud and imposed a lifetime trading ban, according to a report by Bloomberg.
Sharpe, who co-led the Toronto-based private lender with his wife Natasha Sharpe until its 2021 receivership, is challenging the OSC tribunal’s decision on the grounds of procedural unfairness and constitutional violations. According to a statement from his legal counsel, the appeal argues that the commission retroactively applied amendments to the Canadian Securities Act and improperly disclosed confidential testimony.
At its peak, Bridging Finance managed over CAD2bn in assets across a portfolio of private credit investments. The firm was placed into receivership by PricewaterhouseCoopers in 2021 following allegations of misconduct. PwC has since estimated that more than 26,000 investors are likely to recover less than half of their capital.
Sharpe did not participate in the tribunal proceedings, citing concerns over due process after a motion to stay the hearings was rejected. In its ruling, the OSC found that David and Natasha Sharpe had committed multiple fraudulent acts, including misappropriation of investor funds and misleading regulatory investigators. He was fined CAD3.6m, while Natasha Sharpe, the firm’s former CIO, was fined CAD1.9m. A third executive, Andrew Mushore, was fined CAD50,000.
The case has drawn attention not only for its impact on Canada’s private credit sector, but also for broader implications around regulatory overreach and constitutional protections. Sharpe’s legal team noted the potential reputational harm stemming from the public disclosure of tribunal testimony, especially given his public profile as a First Nations economic leader.
