David Sharpe, the former CEO of defunct private lender Bridging Finance Inc., is appealing a ruling by the Ontario Securities Commission (OSC) that found he committed fraud and permanently banned him from trading, claiming the decision violated his legal and constitutional rights.
In a statement released by his legal team, Sharpe argues that the OSC breached due process and exceeded its authority by applying retroactive changes to the Canadian Securities Act. The appeal challenges the regulator’s handling of the case, including what the legal team calls the improper disclosure of Sharpe’s confidential testimony.
“The appeal engages every Canadian’s right to protection from abuse of state power,” said Sharpe’s lawyer, Brian Greenspan. “When an agency such as the OSC violates its own statute and no remedy is provided, confidence in the fairness of regulatory justice is undermined.”
Sharpe, along with his wife, Natasha Sharpe — who served as Bridging’s Chief Investment Officer — was found by the OSC to have committed multiple instances of fraud, including accepting kickbacks and misleading investigators. The tribunal imposed fines of C$3.6 million on David Sharpe and nearly C$2 million on Natasha Sharpe last month. A third executive, Andrew Mushore, was also fined C$50,000.
Sharpe did not participate in the tribunal hearings, stating he had concerns about fairness after his motion to stay proceedings was denied. His legal team claims the decision to move forward without him further compromised the legitimacy of the process.
Bridging Finance, once managing over C$2 billion ($1.5 billion), was placed into receivership in 2021, with PricewaterhouseCoopers appointed as receiver. Court documents indicate that the firm’s 26,000-plus investors are expected to recover less than half of their invested capital.
Sharpe’s team also raised concern about the broad public release of his evidence, which they argue is particularly damaging given his role as a public figure and advocate in Indigenous economic development.
“This case has implications beyond Mr. Sharpe and raises serious questions about the limits of regulatory power and the constitutional protection against self-incrimination,” said Alistair Crawley, a partner at Crawley MacKewn Brush LLP.
The appeal is expected to reignite debate over the scope and conduct of Canadian securities regulators, particularly in high-profile enforcement cases involving private market players.
