The Ontario Securities Commission (OSC) has filed an application under the Bankruptcy and Insolvency Act (BIA) to obtain a bankruptcy order against Mr. Harry Stinson and appoint a trustee over his assets. This action follows Mr. Stinson’s failure to pay financial sanctions and costs ordered by the Capital Markets Tribunal on December 15, 2023, which includes over $13 million in disgorgement and $600,000 in administrative penalties.
Background of the sanctions
Mr. Stinson was sanctioned by the Tribunal after the OSC proved he and his companies failed to comply with Ontario securities law when raising funds from investors for a hotel renovation project in Buffalo, New York. The Tribunal found that Mr. Stinson illegally distributed securities by not filing a prospectus, failed to segregate investor funds, failed to maintain accurate records of funds received from investors, and failed to properly record the use of investors’ funds. Mr. Stinson also admitted to making false or misleading statements to investors.
Attempts to comply and subsequent developments
Since the 2023 ruling, the OSC provided Mr. Stinson with reasonable opportunities to comply after he claimed funds might become available to repay investors if he could refinance and potentially sell the Buffalo Grand Hotel. However, the refinancing never materialized. In 2025, Mr. Stinson applied to vary the sanctions and costs order, but the Tribunal dismissed his application. In December 2025, the City of Buffalo commenced a process to have the Buffalo Grand Hotel deemed abandoned due to an order to vacate, overdue real property taxes, and zoning and safety code violations. In May 2026, the City continued this process after a further financing deal proposed by Mr. Stinson fell through.
Necessity of bankruptcy application
Mr. Stinson has been unable to demonstrate a viable path toward making investors whole or addressing the sanctions ordered against him. The OSC states that today’s application for a bankruptcy order is necessary to try to resolve this long-running case and potentially obtain disgorgement amounts that could be distributed to harmed investors. A public hearing is scheduled for September 23, 2026, where a court will decide whether to appoint a trustee to assume control of Mr. Stinson’s assets.
OSC’s mandate
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca.
Additional context
Mr. Harry Stinson is a resident of Hamilton, Ontario and a real estate broker and property developer. The OSC’s website contains a public list of individuals or companies with unpaid administrative penalties, disgorgement orders and costs, and any applicable interest, ordered against them in enforcement proceedings.
