First Leaside Group of Companies

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Receiver's email address:

Receiver's telephone number: (855) 883-2474

CCAA Proceedings

On February 23, 2012 the First Leaside Group of Entities (“First Leaside”, or the “Applicants”) applied for and received an initial order (the “Initial Order”) for protection from its creditors pursuant to the Companies’ Creditors Arrangement Act (“CCAA”), R.S.C.1985, c.C-36 from the Ontario Superior Court of Justice (Commercial List) (the “Court”), which included, among other things, a stay of proceedings against First Leaside, and the appointment of Grant Thornton Limited as monitor of the Applicants (the “Monitor”).

The Initial Order also:

1. directed that First Leaside make no payments on account of amounts owing to investors and other creditors; and

2. appointed Fraser Milner Casgrain LLP (“FMC”) to act as representative counsel (“Representative Counsel”) to represent the interests of investors. (Effective March 1, 2014, the primary partners dealing with the Representative Counsel mandate left Dentons Canada LLP (“Dentons”) – formerly FMC – and joined Cassels Brock & Blackwell LLP (“CBB”). On March 14, 2014, the Court issued an Order that Dentons was replaced by CBB as Representative Counsel going forward.)

Receivership Proceedings

On December 7, 2012, the Court issued an order which, among other things, terminated the stay of proceedings imposed by the Initial Order and appointed Grant Thornton Limited as receiver of First Leaside (the “Receiver”).

Claims Procedure

On December 7, 2012, the Court approved a claims procedure order to, among other things, develop a procedure for determining and adjudicating claims. The results of the claims procedure are detailed in the Receiver’s third report to court dated July 17, 2013 (the “Third Report”), which is included in the motion record dated July 17, 2015 and returnable July 24, 2013, which may be viewed here or accessed below.

Accounts with Fidelity

On December 7, 2012, the Court issued an order authorizing First Leaside to execute a Custodial Services Agreement with Fidelity Clearing Canada ULC (“Fidelity”). Fidelity agreed to become the successor custodian to Penson Financial Services Canada (“Penson”) in respect of all investor accounts that remained with Penson at the time. The seventh report of the Monitor dated December 5, 2012 further elaborates on the nature of this arrangement and is available here, or accessed below.

Change of Address
An investor who wishes to change their address in either the Receiver’s records or Fidelity’s records must send an email requesting the change of address to and provide documentation to support their current address (which may include a property tax statement, driver’s license, or other documentation which proves their address). An investor who wishes to change their address in Fidelity’s records must also include their Fidelity account number.
Transfers from Fidelity Accounts
An investor who wishes to transfer the cash balance in their Fidelity account may do so by submitting to Fidelity a registered plan transfer form through their personal banking institution. Any personal banking institution can assist in the completion of this form. It is the Receiver’s understanding that investors cannot transfer investments held with Fidelity unless the investor identifies an institution willing to hold the investment certificates. It is the Receiver’s understanding that to date, investors have had difficulty identifying an institution willing to hold the First Leaside investments as the investments are illiquid as a result of First Leaside’s insolvency.

Interim Distribution

On July 24, 2013, the Court issued an order (the “Interim Distribution Order”) authorizing the Receiver to make an interim distribution to creditors on the terms set out in the Interim Distribution Order, including a holdback of certain funds in respect of, among other things: i) the future administration costs of the receivership; and ii) certain disputed and unresolved claims. In accordance with the Interim Distribution Order, the Receiver initiated the interim distribution during July and August 2013. The Receiver prepared a confidential report to the investors dated July 15, 2013 summarizing the interim distribution and associated assumptions, which may be viewed here, or accessed below.

Canadian Investor Protection Fund (“CIPF”) Appeals and Appeal Process

The Receiver is not responsible for CIPF claims or appeals, nor is it capable of making them on an investor’s behalf. Such claims and appeals have been overseen by Representative Counsel.

Representative Counsel’s letters to investors dated November 18, 2014, December 18, 2014, February 13, 2015 and March 5, 2015 (all available below) provide a comprehensive summary as to how the CIPF appeal process works and are intended to assist investors with such process, including by providing links to materials that can be used in connection with appeals. The letters also address decisions that have been rendered of the appeals with respect to the rejection of investors’ claims by CIPF, including specific appeal decisions and reasons of the CIPF Appeal Board. Legal arguments and the materials developed by Representative Counsel for the appeals to CIPF are also included in the letters, for the benefit of all investors.

Relief from the Motion, Returnable June 6, 2017

On June 6, 2017, the Court issued two orders. The first order, among other things:

  1. approved the Fourth Report of the Receiver and the conduct and activities of the Receiver as described therein (the Fourth Report is available below in the “Motion Record Returnable June 6, 2017”);
  2. authorized the Receiver to make the distributions on account of certain investors having net receivable positions with respect to Loans made by FLWM;
  3. authorized the Receiver to set off amounts owing to certain investors on account of the Interim Distribution which have been held-back, against the amounts owed by those investors to FLWM;
  4. approved a settlement of a claim made by the Mortgage Fund;
  5. approved the Receiver’s Interim Statement of Receipts and Disbursements; and
  6. approved the fees and disbursements of the Receiver, its legal counsel and those of Dentons and Cassels Brock in their capacities as Representative Counsel for the period of June 1, 2013 to March 31, 2017.

Additional details regarding the following relief can be found in the Fourth Report available below in the “Motion Record Returnable June 6, 2017”.

          Relief Sought Regarding Fidelity Accounts

The Court also issued an order which provides for the comprehensive wind-down of accounts of former customers of First Leaside Securities Inc. (“FLSI”) held by Fidelity.

Representative Counsel sent a letter to Fidelity investors with known email addresses on July 7, 2017 summarizing the necessary information for First Leaside investors who hold accounts at Fidelity and the implication of the order to these investors, a copy of which is here and linked below under the “Communications to Investors” heading.

Remaining Activities in the Receivership

The Receiver has completed the sale of all remaining assets and properties of First Leaside. The Receiver’s remaining activities include:

  • finalizing the settlement of any disputed and unresolved claims;
  • continuing the litigation against David Phillips and Margaret Davis;
  • preparing and making a final distribution to creditors and investors, if any, subject to Court approval; and
  • obtaining the Receiver’s discharge.

At this time, the Receiver cannot confirm the date that these remaining activities will be completed. No further distributions will be made, and the Receiver shall not seek its own discharge, without prior written notice to the service list and Court approval.

Claim Process


Monitor's Reports

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