OSC alleges securities law violations by Emerge Canada Inc.

TORONTO, March 10, 2025 /CNW/ - The Ontario Securities Commission (OSC) announces allegations of Ontario securities law violations against former investment fund manager Emerge Canada Inc. (Emerge), two of its directors and officers, and members of the Independent Review Committee (IRC) for the funds that Emerge managed (the Emerge IRC).   

The OSC alleges Emerge acted in its own interests by knowingly taking an estimated $6 million of investor money (the receivable) in self-dealing loans over a period of nearly four years; most of which was used to prop up its own businesses that were experiencing financial distress. The allegations state Emerge breached its duties to investors, caused the funds to enter into prohibited loans, failed to properly address the conflict of interest created by the receivable, and failed to maintain proper books and records, or an adequate system of controls and supervision to ensure compliance with securities legislation.

In addition, the OSC alleges the Emerge IRC members' response to the receivable breached their duties to investors and other obligations under securities law. Through the IRC's inaction, it deprived investors of safeguards designed to protect them from this type of harm.

The OSC's action on this case follows work carried out across its Registrations, Inspections, and Examinations (RIE), Investment Management, and Enforcement divisions.

A copy of the Application for Enforcement Proceedings (formerly referred to as the 'Statement of Allegations') is available on the Capital Markets Tribunal website.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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SOURCE Ontario Securities Commission

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