Bridging Finance Chief Executive Officer David Sharpe has been fired from his position one week after the Ontario Securities Commission (OSC) launched an investigation into the private lender.
A provincial judge has ordered that audit and accounting firm PricewaterhouseCoopers take control of Bridging Finance. In a legal filing late last week, the OSC said it had been informed by PwC counsel that it had terminated Sharpe’s employment with Bridging Finance.
The filing also stated that PwC would file the appropriate paperwork to remove his title as "Ultimate Designated Person" at the firm. The OSC already issued a temporary trading halt on the firm’s funds and suspended Sharpe’s registration as head of the company.
Sharpe's termination comes amid serious allegations of misconduct and failures of disclosure at Bridging Finance. The OSC alleges that Bridging Finance misappropriated about $35 million to complete an acquisition for its own benefit, that Sharpe received $19.5 million in undisclosed payments to a personal chequing account.
The OSC also alleges that Bridging Finance lent $32 million to a borrower shortly before the party bought a stake in the private lender.
