An Ontario court has appointed a receiver for a small Toronto-based fund manager and exempt market dealer, Stableview Asset Management Inc.
At the request of the Ontario Securities Commission (OSC), the Ontario Superior Court of Justice issued an order appointing Grant Thornton Ltd. as the receiver for the Stableview Group, which includes the firm and several investment funds.
According to the OSC’s application for the court order, a compliance review in 2019 found that the firm (and its sole director and officer, Colin Fisher) breached securities rules in several ways, including causing the funds to “become significantly over-concentrated in investments of a penny stock named Clarocity Corp.”
This, in turn, caused the funds to breach their investment restrictions. Further, “Stableview was in a conflict of interest by virtue of its receipt of undisclosed compensation under consulting agreements it had with Clarocity,” the OSC alleged. “Stableview investors have suffered and continue to suffer substantial losses as a result of Stableview and Fisher’s breaches of the Securities Act.”
As a result of the breaches, the OSC imposed conditions on Stableview’s registration, including trading and financial restrictions.
“However, since those steps were taken, Stableview has continued to engage in misconduct,” the commission told the court in seeking a receiver to oversee the firm and its funds.
“A receivership is necessary to ensure the orderly wind-down of Stableview and the distribution of proceeds on an equitable basis under the supervision of the court,” the OSC alleged, adding, “The proposed receivership order will ensure that investors’ interests are protected while staff’s investigation and enforcement efforts continue.”
The OSC has not brought enforcement allegations in the case, and the allegations in the court filings have not been proven.