According to documents released by the regulator on Friday afternoon, David Sharpe is asking the OSC for a statement that his staff violated the Securities Act, along with an order to quash the investigation. Sharpe also requested that the testimony in question be sealed by the Ontario Superior Court of Justice and removed from the receiver’s website.
Bridging Finance was sharply put in the spotlight in late April when it was placed in receivership – under the control of PricewaterhouseCoopers (PWC) – as part of an OSC investigation into alleged mismanagement of funds, among many. other alleged infractions. None of the claims have been tested or proven.
Since then, Sharpe has been ousted and hundreds of pages of documents related to the investigation have been posted online by PWC. This included the transcript of Sharpe’s exam by the OSC’s senior forensic accountant, Daniel Tourangeau, on April 28, just days before PWC took control of the lender.
Crawley Mackewn Brush LLP, who represents Sharpe, said in the application that he was unaware that the testimony would be released to the public. The law firm claims that subsequent media coverage was “presented in a manner that was both derogatory and irreparably damaging”, “fatally undermined the integrity of the staff investigation” and “potentially harmed to the interests of investors by exacerbating negative media attention towards Bridging Finance and its borrowers.
An OSC spokesperson said in an emailed statement that the regulator’s enforcement staff intended to oppose Sharpe’s request.
The OSC has scheduled a hearing on the matter for July 22.