A mortgage investment corporation raised nearly $5.3 million from 30 investors but failed to deploy funds as promised
A man from Ancaster, Ontario has pleaded guilty to investment fraud after raising nearly $5.3 million from around 30 investors.
The Ontario Securities Commission (OSC) announced on July 15, 2026 that Ian Ross McSevney had entered guilty pleas to fraud and distributing securities without filing a prospectus. Both charges are contrary to Ontario securities law.
How the investment fraud scheme worked
McSevney controlled and operated Altmore Mortgage Investment Corporation (Altmore).
Between May 2015 and May 2019, he solicited funds from Ontario investors. Investors were told their money would be placed into mortgages and other real estate-secured loans.
Altmore did not build a meaningful portfolio of that kind. While some legitimate loans were arranged, the OSC says most investor funds were not deployed as represented.
Of the nearly $5.3 million raised, around $3 million was repaid to investors. Those repayments were typically funded using money from other investors.
McSevney also directed roughly $1 million toward credit cards and family members or relatives. The OSC notes those payments were drawn from a combination of investor funds and other sources.
OSC enforcement response
Bonnie Lysyk, executive vice-president for enforcement at the OSC, said investors had every right to expect their money would be used as represented.
“Mr. McSevney raised millions from investors for what was presented as a mortgage investment corporation but most of those funds were not invested as promised,” Lysyk said. “This has no place in Ontario, and this outcome reinforces our commitment to protecting the integrity of our capital markets.”
McSevney’s matter returns to court on September 8, 2026, at 10 Armory Street in Toronto. The hearing will address scheduling for sentencing submissions.
What advisors should know
Mortgage investment corporations are a common exempt-market product in Canada. They pool investor capital to fund mortgage loans, typically on residential or commercial real estate.
They are not guaranteed investments. Returns depend on the quality of the underlying loan portfolio. As this case illustrates, investors must be able to trust that funds are deployed as promised.
Canadian financial advisors are increasingly on the front line of investor protection. Clients who participate in exempt-market products rely on their advisors to conduct proper due diligence before recommending any offering.
The OSC urges investors to verify the registration of any person or company offering an investment opportunity before committing funds.
This case follows other recent OSC enforcement actions. The regulator secured a fraud conviction against a cryptocurrency startup director earlier in 2026. The OSC has signalled it will continue prioritising criminal prosecution of investment fraud.
Advisors who encounter clients approached by unregistered or unverified investment vehicles are encouraged to review the OSC’s current enforcement priorities for 2026–27, which include a sharpened focus on property schemes and misleading disclosures.
Sentencing in the McSevney investment fraud matter is expected to be scheduled at the September court appearance.
As enforcement actions against investment fraud intensify, staying informed is essential. Bookmark our regulators news section for the latest updates affecting Canadian advisors.
