A Liechtenstein trust tried to stay out of Ontario's reach. The court said no.
An Ontario appeal court has cleared the way for fraud claims tied to the Bridging Finance collapse to proceed against an offshore Liechtenstein trust.
The Court of Appeal for Ontario dismissed the appeal on June 18, 2026, in Bridging Finance Inc. v. Sharpe, 2026 ONCA 432. The ruling keeps two related lawsuits in Ontario, where a receiver and a group of lenders are trying to recover money they say was taken from the failed Toronto fund manager.
The claims center on David and Natasha Sharpe, the former principals of Bridging Finance Inc. The plaintiffs allege the couple falsely presented the firm as a legitimate investment and loan company while moving its money into an offshore trust in Liechtenstein, the Salus Rete Trust. The Sharpes and their minor son were the trust's beneficiaries, though the parents renounced their interests on August 3, 2021, leaving the son as the sole beneficiary.
One action was brought by PricewaterhouseCoopers, the court-appointed receiver of Bridging Finance and related funds. The other was filed by ABR PI Investments and affiliated funds managed by BlackRock Financial Management Inc. Both sets of plaintiffs are seeking damages and other relief for fraud against several defendants, including the trust's trustee, First Trust Management AG.
The appeal did not test whether the alleged fraud happened. It turned on a narrower question: whether Ontario courts can hear claims against a trustee based in Liechtenstein. First Trust argued they could not, saying Ontario lacked jurisdiction and that the case belonged offshore.
The court disagreed. It found the dispute has a real and substantial connection to Ontario. The trust deed, dated January 1, 2021, was signed by the Sharpes in Ontario, and the alleged misappropriation of funds happened there. The court reasoned that fraud occurs where the money is wrongfully taken, not where it ends up.
For the trustee specifically, the plaintiffs allege it knew or should have known where the money came from and accepted it anyway. They say First Trust either knowingly helped the Sharpes breach their duties or knowingly received funds that did not belong in the trust.
The BlackRock action also involves loan agreements the court found were made in Ontario. Under those deals, BlackRock agreed to lend $17,750,000 to one borrower and $52,500,000 to Bridging Finance. The plaintiffs say funds traceable to those loans ended up in the trust.
The decision matters for anyone tracing money after a fund failure. It signals that an offshore structure may not shield a recipient from facing claims in the province where the money originated, especially when the recipient knew the settlors and the source.
The appeal was dismissed in full. The underlying fraud claims remain allegations that have not been decided. The court invited written submissions on costs if the parties cannot agree.
