| Industry | Financial services |
|---|---|
| Fate | in receivership with PricewaterhouseCoopers LLP the court-appointed receiver |
| Headquarters | Toronto, Ontario , |
Key people | David Sharpe, Natasha Sharpe, Jenny Coco, Rock-Anthony Coco, Andrew Mushore, Gary Ng, and Sean McCoshen |
| Products | private credit |
| Total assets | $2.1 billion CAD (2021) [1] |
| Website | www |
Bridging Finance Inc. was a Canadian private lender based in Toronto, Ontario, Canada that was placed in receivership by the Ontario Court of Justice following an investigation by the Ontario Securities Commission (OSC). Investors in the firm's funds are expected to lose approximately 58-66% of their capital. That is one of the "largest collapses of an investment fund in Canadian history." [2] In 2023, the Ontario Securities Commission (OSC) alleged that former CEO David Sharpe, former Chief Investment Officer Natasha Sharpe and former Chief Compliance Officer, Andrew Mushore "committed fraud, misappropriated funds, made misleading and untrue statements and misled investigators." [3] On October 29th 2024, the Ontario Securities Commission Tribunal ruled that Bridging Finance executives David and Natasha Sharpe committed fraud, and that Andrew Mushore "indirectly participated" in the fraudulent activities. [4]
Bridging was owned by Natasha Sharpe, Jenny Coco and Rocky Coco (the Cocos are brother and sister owners of Coco Paving Inc.) [5] Sharpe worked with the Cocos in a previous role at the Bank of Montreal where she provided commercial banking services to Coco Paving. [6] Sharpe joined the board of directors of the Coco Group in 2011. Subsequently, the Cocos provided capital to launch Bridging in 2012.
In 2019, Natasha Sharpe and other shareholders agreed to sell 50% of Bridging's equity to Gary Ng for $50 million. It was later revealed that Ng paid for the investment with the proceeds of a $32 million loan that he received from one of Bridging's credit funds. [7] This use of client money to fund a capital transaction that benefited Bridging's owners is one of the transactions listed by the OSC as being under investigation.
At the time that Bridging was placed in receivership, the Directors of the parent Bridging Finance Inc. were Natasha Sharpe, Jenny Coco, Rock-Anthony Coco and Hugh O'Reilly. The Cocos and O'Reilly resigned as Directors following the appointment of PWC as receiver. [8]
The principal conflicts of interest being investigated by the OSC:
On October 29, 2024, Ontario Securities Commission (OSC) Tribunal ruled that Bridging Finance Inc. (BFI) founders David and Natasha Sharpe engaged in fraud, leading to over $1 billion in investor losses. [13]
The tribunal found that the Sharpes conflicted transactions and securities violations, including channeling millions in loans to companies tied to businessman Sean McCoshen, who paid kickbacks to the Sharpes. The tribunal also found that $40 million was used to benefit BFI and the Sharpes in a deal with Ninepoint Partners LP, and loans were also transferred to Gary Ng, who used fake collateral to buy a stake in BFI. [14]
Natasha Sharpe was also implicated in approving $32 million in loans to Gary Ng's companies, with Mr. Ng paying the Sharpes $1 million. David Sharpe received $19.5 million in kickbacks from Sean McCoshen, with $18.2 million traced to investor funds. [15]
The tribunal found the Sharpes guilty of fraud, document forgery, and misleading investigators. It further noted that David Sharpe attempted to intimidate former employees, business associates, and borrowers, while wrongfully implicating others in their fraudulent schemes. BFI’s former compliance officer Andrew Mushore was also found to have indirectly participated in the misconduct. [16]
Bridging was placed into receivership by the Ontario Court of Justice on 30 April 2021. PwC terminated David Sharpe and Natasha Sharpe within days of taking over as receiver. [5]
In its role as receiver, PricewaterhouseCoopers (PwC) launched a process to sell Bridging's debt portfolio. The proceeds of the sale would be used to partially repay investors in Bridging's private credit funds. In April 2022, PwC stated that the bids that it received for the portfolio were below the likely value of an orderly liquidation. PwC then recommended to the court that the portfolio be allowed run-off over a five-year period. [1] PwC's estimates of likely recoveries were between 34% and 42%, that would lead to total losses of approximately $1.3 billion out of the peak assets of $2.09 billion. [17]
As the investigations have continued, it has become clear that Rishi Gautam was a victim of the principal of Bridging Finance and their fraudulent activities who was wrongly accused and is no longer being investigated by the OSC. As a result, most of the lawsuits in which he was included as one of the defendants have discontinued and withdrawn the claims against him. [18]
PWC has also disclosed that they, as the receiver, are actively trying to track down "funds transferred by certain former principals of Bridging Finance to, among other jurisdictions, Liechtenstein and the Cayman Islands.” [19]
Bridging had two auditing relationships for its funds over time with KPMG beginning to audit the largest fund (initially named the Sprott Bridging Income Fund) in 2016. Ernst & Young (EY) was auditor of several other Bridging funds over the 2014-2018 period. [20] All auditing was consolidated with KPMG in 2019. In their role as receiver, PWC is suing both of Bridging's former accountants alleging weaknesses in their audit processes that allowed the Sharpes to commit fraud.
In April 2023 PwC launched a series of lawsuits against Bridging's former auditor, KMPG, Bridging insiders and external borrowers implicated in the fraud cases outlined by the OSC: [19] [21] PWC filed suit against KPMG on 12 April 2023 for CAD$1.4 billion. [19] PwC alleges that "throughout KPMG’s tenure, the Bridging funds materially misrepresented the value of their assets and financial performance. KPMG negligently failed to detect and report on these misstatements.” [22]
In June 2025, PWC filed suit against EY for $1.4 billion alleging that EY failed to detect fraud when it audited several Bridging funds. [23]
| Defendants | Filed | Claimed Damages | Status as of July 2025 |
|---|---|---|---|
| KPMG LLP | 12 April 2023 | C$1.4 billion (auditor negligence) | Ongoing |
| EY (Ernst & Young LLP) | 11 June 2025 | C$1.4 billion (audit failures) | Ongoing (new claim) |
| David & Natasha Sharpe et al. (incl. Jenny & Rock‑Anthony Coco) [19] | 27 April 2023 | C$1.7 billion (fraud, breach of duty) | Ongoing |
| Gary Ng et al. [19] | 8 April 2023 | C$160 million (fraud/unjust enrichment) | Ongoing |
| Rishi Gautam et al. [19] | 28 April 2023 | ~C$38 million (fraud/unjust enrichment) | Withdrawn/Discontinued |
| Sean McCoshen et al. [19] | 28 April 2023 | C$160 million + US$5.8 million (civil fraud) | Ongoing |
| Chubb Insurance Co. of Canada [19] | 26 April 2023 | C$90 million (fidelity insurance) | Ongoing |