Class Actions

Stableview Class Action —

This proposed class action is brought against Colin Fisher on behalf of all the investors in the Stableview Yield and Growth Fund, the Stableview Progressive Growth Fund and Stableview Insight Fund LP who invested between January 1, 2016 to March 24, 2020, and who remained invested in any of these funds as of March 24, 2020.

Case Overview

Waddell Phillips PC, along with Flaherty McCarthy LLP, has launched a proposed class action against Stableview Asset Management Inc., the Stableview Yield and Growth Fund, the Stableview Progressive Growth Fund and Stableview Insight Fund LP, and Colin Fisher on behalf of all the investors in these Funds who invested between January 1, 2016 to March 24, 2020, and who remained invested as of March 24, 2020.

The claim alleges that the Defendants were negligent in the operation and management of the Funds, and that Fisher and Stableview breached their fiduciary duties and  breached their contracts with the proposed class.  The losses suffered by the proposed class are believed to be in the range between $7 million to $20 million.

Colin Fisher is the sole officer and director of Stableview Asset Management Inc., and is its Ultimate Designated Person, Chief Compliance Officer, sole advising representative and sole dealing representative. In approximately January 2016, Fisher caused the Funds to start investing in debentures of a penny stock, Clarocity Corporation.  Clarocity was losing money from the outset of these transactions.

Over time, the Funds became massively over-concentrated in Clarocity securities, including the debentures and stock, in breach of Stableview’s management agreement with the Insight Fund, and in breach of the investment parameters for the funds, in breach of the investors’ portfolio management agreements, and in breach of Fisher’s and Stableview’s fiduciary duties owed to the proposed class.

In 2019, Clarocity was petitioned into receivership by Stableview.  The debentures held by the Funds were worth a fraction of their par value, as Clarocity continued to lose money from the date they were acquired.  The Clarocity debentures were converted into securities of another company, iLookabout.  The Funds remain over-concentrated in iLookabout securities.  The Clarocity securities held by the Funds are worthless.  The investors have lost many millions of dollars.

In 2019, Stableview was audited by the Ontario Securities Commission. During the audit the OSC discovered the over-concentration in Clarocity securities, and identified many other irregularities in the manner in which Fisher had been operating Stableview and the Funds, including that the value of the securities in the investors’ accounts had been improperly valued and the reported net asset values were excessive and incorrect.

The OSC has had a receiver manager appointed over Stableview and the Funds on June 9, 2020.  Information about the receivership is available at www.grantthornton.ca/stableview.

The Proposed Class

The proposed class is:

All persons who were invested in any of: (i) the Stableview Progressive Growth Fund; (ii) the Stableview Yield & Growth Fund; or (ii) the Stableview Insight Fund LP from January 1, 2016 to March 24, 2020 and who remained invested in any of these Funds as at March 24, 2020, exclusive of the past and present parents, subsidiaries, affiliates, executive or management level employees, agents, or legal representative of the Stableview Group, or Colin T. Fisher, his legal representatives, heirs, successors or assigns.


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If you were a Stableview investor, we want to hear from you.

Please contact us, using the confidential link below.

Case Overview

Waddell Phillips PC, along with Flaherty McCarthy LLP, has launched a proposed class action against Stableview Asset Management Inc., the Stableview Yield and Growth Fund, the Stableview Progressive Growth Fund and Stableview Insight Fund LP, and Colin Fisher on behalf of all the investors in these Funds who invested between January 1, 2016 to March 24, 2020, and who remained invested as of March 24, 2020.

The claim alleges that the Defendants were negligent in the operation and management of the Funds, and that Fisher and Stableview breached their fiduciary duties and  breached their contracts with the proposed class.  The losses suffered by the proposed class are believed to be in the range between $7 million to $20 million.

Colin Fisher is the sole officer and director of Stableview Asset Management Inc., and is its Ultimate Designated Person, Chief Compliance Officer, sole advising representative and sole dealing representative. In approximately January 2016, Fisher caused the Funds to start investing in debentures of a penny stock, Clarocity Corporation.  Clarocity was losing money from the outset of these transactions.

Over time, the Funds became massively over-concentrated in Clarocity securities, including the debentures and stock, in breach of Stableview’s management agreement with the Insight Fund, and in breach of the investment parameters for the funds, in breach of the investors’ portfolio management agreements, and in breach of Fisher’s and Stableview’s fiduciary duties owed to the proposed class.

In 2019, Clarocity was petitioned into receivership by Stableview.  The debentures held by the Funds were worth a fraction of their par value, as Clarocity continued to lose money from the date they were acquired.  The Clarocity debentures were converted into securities of another company, iLookabout.  The Funds remain over-concentrated in iLookabout securities.  The Clarocity securities held by the Funds are worthless.  The investors have lost many millions of dollars.

In 2019, Stableview was audited by the Ontario Securities Commission. During the audit the OSC discovered the over-concentration in Clarocity securities, and identified many other irregularities in the manner in which Fisher had been operating Stableview and the Funds, including that the value of the securities in the investors’ accounts had been improperly valued and the reported net asset values were excessive and incorrect.

The OSC has had a receiver manager appointed over Stableview and the Funds on June 9, 2020.  Information about the receivership is available at www.grantthornton.ca/stableview.

The Proposed Class

The proposed class is:

All persons who were invested in any of: (i) the Stableview Progressive Growth Fund; (ii) the Stableview Yield & Growth Fund; or (ii) the Stableview Insight Fund LP from January 1, 2016 to March 24, 2020 and who remained invested in any of these Funds as at March 24, 2020, exclusive of the past and present parents, subsidiaries, affiliates, executive or management level employees, agents, or legal representative of the Stableview Group, or Colin T. Fisher, his legal representatives, heirs, successors or assigns.


Contact Us

If you were a Stableview investor, we want to hear from you.

Please contact us, using the confidential link below.

On Monday, November 16, 2020, Stableview’s Receiver’s First Report was accepted by the court, and the Receiver has been authorized to negotiate an agreement with B.E.S.T. Investment Counsel Limited for the purpose of assigning to BEST the management of the Funds.  It appears, therefore, that the Funds are not likely to be wound up in the near future.

On March 20, 2021, the Receiver obtained an order from the Court approving the distribution of $10 million to the investors in the Progressive Fund.  The Receiver is holding a reserve of approximately $5 million, and holds other investments that are valued at approximately $40 million, subject to certain restrictions.

The Receiver is not proceeding with the appointment of BEST, given that the asset holdings in the Fund – particularly the Acuity shares and Voxtur shares and warrants – had considerably appreciated in value since the beginning of the Receivership, and it was able to sell shares in Acuity at a price substantially higher than the average cost at which they were acquired. Several large investors advised the Receiver that they preferred that the Receiver continue to monetize the assets in the Funds, rather than transferring management to BEST.  The Receiver will continue to liquidate the assets.

While this liquidation process is underway, the extent of losses suffered by the proposed class, if any, remains uncertain.  Counsel will continue to monitor the situation.

Information about the Receivership is available here.


On December 16, 2020, the Ontario Securities Commission issued a Notice of Hearing and Statement of Allegations against Colin Fisher and Stableview Asset Management Inc., in which it alleges Fisher’s conduct was fraudulent. The matter is now in the disclosure stage, with the next scheduling attendance set for May 3, 2021.


 

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