Canadian securities regulators received four independent whistleblower complaints against a multibillion-dollar investment firm Catalyst Capital Group Inc., The Wall Street Journal reported on Wednesday.
One of Canada’s largest private-equity firms was accused of fraudulent operations. The case was brought to the country’s leading securities regulator — Ontario Securities Commission.
According to the complaints it was artificially inflating the value of some of its assets and deceiving borrowers about the terms of loans it made.
Toronto Police Service special financial crimes unit is also looking into the case of Catalyst.
Catalyst Capital Group Inc. oversees $4.8 billion for international clients, mostly investing into high-interest loans to financially distressed firms like casino game makers or biopharmaceutical companies.
The company’s officials said they know of no legitimate basis for any whistleblower complaint and that they believe the whistleblowers filed “deliberately misleading” reports.