Today's Report on Business - The Globe and Mail - January 7
Jan 7, 2020 15:16:57 GMT
Moderator, forexloonie, and 2 more like this
Post by nemesis on Jan 7, 2020 15:16:57 GMT
Page 3 of today's business section has a story about BDO facing a shareholder suit over its audit work for Crystal Wealth.
The founder, Clayton Smith, eventually had to settle in 2018 after the OSC froze the asets and placed the company in receivership.
Now the investors, the receiver and the OSC are going after BDO.
'The claim launched by investors alleges they relied on Crystal Wealth's audited financial statements when making their investment decisions.
BDO owed investors a "continuing duty of care to diligently investigate, uncover and disclose any misstatements or omissions in the funds'
financial statements and in any material filed with the OSC"
Omissions is certainly a word that spikes my interest.
It is the omission of the true nature of Westcourt's withdrawl from the fund that prevented other investors from understanding the ELO proffer and why it
came into play at that time. Had that information been made available to all other investors, I am quite sure that many (maybe most) investors
would have also taken the ELO haircut and exited the fund.
This was material information (disclosure) that was not made available to the rest of the investor group.
Omission indeed!!!!
The founder, Clayton Smith, eventually had to settle in 2018 after the OSC froze the asets and placed the company in receivership.
Now the investors, the receiver and the OSC are going after BDO.
'The claim launched by investors alleges they relied on Crystal Wealth's audited financial statements when making their investment decisions.
BDO owed investors a "continuing duty of care to diligently investigate, uncover and disclose any misstatements or omissions in the funds'
financial statements and in any material filed with the OSC"
Omissions is certainly a word that spikes my interest.
It is the omission of the true nature of Westcourt's withdrawl from the fund that prevented other investors from understanding the ELO proffer and why it
came into play at that time. Had that information been made available to all other investors, I am quite sure that many (maybe most) investors
would have also taken the ELO haircut and exited the fund.
This was material information (disclosure) that was not made available to the rest of the investor group.
Omission indeed!!!!
