Canadian Private-Equity Giant Catalyst Accused of Fraud by Whistleblowers

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At least four individuals have filed whistleblower complaints with Canadian securities regulators alleging fraud at a multibillion-dollar investment firm and its publicly traded lending arm, according to people familiar with the matter and documents reviewed by The Wall Street Journal. Catalyst Capital Group Inc., one of Canada’s largest private-equity firms, is accused in the complaints of artificially inflating the value of some of its assets and deceiving borrowers about the terms of loans it made, The Wall Street Journal reported. The complaints have prompted officials at the Ontario Securities Commission, the country’s leading securities regulator, to make inquiries and question people familiar with Catalyst, according to the people and documents. A unit of the Toronto Police Service that specializes in financial crimes has separately begun its own inquiries, a department spokeswoman said. The inquiries don’t necessarily lead to an investigation. Catalyst is led by Newton “Newt” Glassman, 53 years old, who has described his businesses as the “Goldman Sachs of Canada.” Read more. (Subscription required.)