Crocus Investment Fund
Encyclopedia
The Crocus Investment Fund was a Labour Sponsored Venture Capital Corporation
in Manitoba
, Canada
.
In 2004-05, the company stopped trading and was forced into receivership following allegations that it misled shareholders and overvalued its assets. In addition, $10,000,000 provided by a Quebec labour sponsored venture capital corporation
to the Crocus Investment Fund was classified by management and approved by PricewaterhouseCoopers Winnipeg as being an equity investment.
The fund has asserted that preferred shares were provided in exchange to the Quebec labour-sponsored investment fund and as such, the shares issued were, in substance, a liability under Canadian Generally Accepted Accounting Principles (CICA Handbook Section 1000, Financial Statement Concepts and Section 3855, Financial Instruments — Recognition and Measurement).
The scandal was first exposed by Bernie Bellan of The Jewish Post
and News.
PricewaterhouseCoopers Winnipeg, the Crocus Investment Fund, Crocus Capital Inc., the Underwriters, the Manitoba Securities Commission, and both the former Directors and Managers of Crocus are being sued in a class action suit.
PricewaterhouseCoopers Winnipeg came to a settlement with the plaintiffs for damages of $6,000,000. This was the highest settlement award for the Crocus Investment Fund of any of the defendants in the class action lawsuits.
Labour Sponsored Venture Capital Corporation
A labour-sponsored venture capital corporation ', known alternately as labour-sponsored investment fund ' or simply retail venture capital, is a fund managed by investment professionals and invested in small to mid-sized Canadian companies...
in Manitoba
Manitoba
Manitoba is a Canadian prairie province with an area of . The province has over 110,000 lakes and has a largely continental climate because of its flat topography. Agriculture, mostly concentrated in the fertile southern and western parts of the province, is vital to the province's economy; other...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
In 2004-05, the company stopped trading and was forced into receivership following allegations that it misled shareholders and overvalued its assets. In addition, $10,000,000 provided by a Quebec labour sponsored venture capital corporation
Labour Sponsored Venture Capital Corporation
A labour-sponsored venture capital corporation ', known alternately as labour-sponsored investment fund ' or simply retail venture capital, is a fund managed by investment professionals and invested in small to mid-sized Canadian companies...
to the Crocus Investment Fund was classified by management and approved by PricewaterhouseCoopers Winnipeg as being an equity investment.
The fund has asserted that preferred shares were provided in exchange to the Quebec labour-sponsored investment fund and as such, the shares issued were, in substance, a liability under Canadian Generally Accepted Accounting Principles (CICA Handbook Section 1000, Financial Statement Concepts and Section 3855, Financial Instruments — Recognition and Measurement).
The scandal was first exposed by Bernie Bellan of The Jewish Post
The Jewish Post
The Jewish Post & News of Winnipeg, Manitoba, Canada, is Western Canada's first Anglo-Jewish newspaper.The Jewish Post was the West's first "Anglo-Jewish newspaper", so described because its language was English though its concerns were those of the Jewish community.Founded in 1925, it fought a...
and News.
PricewaterhouseCoopers Winnipeg, the Crocus Investment Fund, Crocus Capital Inc., the Underwriters, the Manitoba Securities Commission, and both the former Directors and Managers of Crocus are being sued in a class action suit.
PricewaterhouseCoopers Winnipeg came to a settlement with the plaintiffs for damages of $6,000,000. This was the highest settlement award for the Crocus Investment Fund of any of the defendants in the class action lawsuits.