Cangap et al., a Toronto, Ontario-based private equity group that seeks secured lending opportunities with a focus on management buyouts, acquisitions and consolidations, was placed in receivership on November 15 on application by Creative Wealth Monthly Pay Trust and Creative Wealth Capital (together the "Trust"). The Trust discovered that it is likely the victim of a scheme perpetrated by the respondents to misappropriate approximately $10.7MM in investments. As part of an overarching investment vehicle between the applicants and respondents, the Trust invested substantial funds in the respondent limited partnership, Cangap Merchant Capital LP ("CMC LP"). However, since August 2015, CMC LP has failed to remit any payments to the Trust; furthermore, the Trust has discovered that CMC LP is no longer listed as an active entity, contrary to its contractual obligations. To date, CMC LP and its general partner, Cangap Merchant Capital Corp. ("CMC GP"), as well as the sole director and officer of CMC LP and CMC GP, Emlyn David, have refused to provide the Trust with any financial statements, reports or responses. The Trust also allege that Mr. David has apparently started to sell or dissipate assets, and that he has co-mingled finances. In the past several months, the Trust discovered that CMC LP and/or CMC GP had allegedly bought out Skyservice Investments - Canada's largest operator and provider of aviation services - as well as related senior and subordinated debt. Skyservice eventually sold a majority of its equity interest to InstarAGF Asset Management. The Trust alleges that it believes that Mr. David financially benefited from the sale and never advised it of this transaction. Given the compete absence of correspondence and financial reporting of CMC LP, CMC GP and Mr. David, as well as the applicants' suspicion that Mr. David has misappropriated the Trust's funds, the applicants can no longer reasonably have confidence in Mr. David. Fuller Landau was appointed receiver. Counsel is Gardiner Roberts for the applicants and Woolgar VanWiechen Cosgriffe Ducoffe for the respondents.