BDO appointed as receiver over OSC settlement funds to administer investor claims process

On January 7, 2026, the Ontario Superior Court of Justice (Commercial List) appointed BDO Canada Limited as receiver over settlement funds paid to the Ontario Securities Commission pursuant to a settlement agreement with David Cartu. The appointment was made under section 129 of the Securities Act (Ontario) and section 101 of the Courts of Justice Act. The receivership is limited in scope to the settlement funds and is paired with a court-approved claims process aimed at determining and paying claims of Ontario-based investors.

The OSC commenced civil enforcement proceedings on May 4, 2020 against David Cartu and his brothers, Joshua and Jonathan Cartu, alleging contraventions of Ontario securities law arising from the sale and facilitation of binary options trading to Ontario investors between approximately July 2013 and April 2017. The Commission alleged that the Cartu family operated and controlled a network of online trading platforms and related payment processing entities, including UKTVM Ltd. and Greymountain Management Limited, which were used to facilitate unregistered and illegal binary options transactions. As part of the enforcement proceedings, the Commission compiled an investor list identifying hundreds of Ontario investors who incurred losses during the relevant period, forming the basis for the subsequent settlement with David Cartu and the creation of the settlement funds now subject to the receivership.

Under the settlement, $300,000 was paid to the Commission as an administrative penalty. The Court accepted that the settlement funds were insufficient to make affected investors whole and that a neutral court-supervised process was required to ensure a fair and equitable allocation among Ontario investors who suffered losses.

The Claims Process Order authorizes the receiver to administer a structured claims process to determine investor entitlements to the settlement funds. Following adjudication, the receiver is authorized to distribute the settlement funds to investors with proven claims on a pro rata basis.

Counsel to the Commission is Thornton Grout Finnigan LLP.