Thursday, February 11, 2010
What is this Norshield Asset Management Mess about?
Norshield was the parent company overseeing a "conservative" hedge fund called the Olympus family. The OSC suspended Norshield from trading the funds on May 26, 2005. At that time there was almost CDN$500 million in the fund. There were approximately 1900 retail investors (like you and me) who had invested anywhere from CDN$132 million to CDN$215 million, depending on which article you read. Institutions also invested in Norshield, "Several pension funds for Quebec cities, including Laval and Sherbrooke" were included. These corporate investors directed over CDN$350 million into Norshield. Who knows how many people have been affected indirectly?
It has been almost five years since the OSC suspended Norshield. A trustee in bankruptcy has been appointed - RSM Richter.
Nothing has yet been done for investors.
In this hedge fund scandal, wherein $500 million dollars has been lost to what may have been a Ponzi-like scheme, the largest such alleged fraud in Canada, nothing has been settled financially or criminally after five years. In the interim, the $50 billion dollar Bernard Madoff hedge fund fraud has been identified and its perpetrator has already been tried and jailed.
This makes us look like bumbling Canadians while the US discovers a fraud and metes out justice in a fraction of the time.