Ian Ross McSevney pleaded guilty to fraud and illegally distributing securities after raising nearly C$5.3 million from approximately 30 Ontario investors through Altmore Mortgage Investment Corporation between May 2015 and May 2019, the Ontario Securities Commission announced on 15 July. McSevney, the sole directing mind of Altmore, admitted to distributing securities without filing a prospectus, contrary to Ontario securities law. The OSC alleges that while investors were told their money would fund mortgages and loans secured by real estate, most of the C$5.3 million raised was not invested as represented, with approximately C$3 million repaid to investors using funds from newer investors and approximately C$1 million directed toward credit card payments and family members. The case represents one of the latest OSC enforcement actions targeting investment schemes that promised exposure to real estate-backed lending while allegedly using investor funds for purposes other than those represented.
McSevney Admits Fraud Charges Related to Altmore Mortgage Investment Corporation
According to the OSC, investors were led to believe that Altmore Mortgage Investment Corporation would use their money to originate mortgages and other loans secured by real estate. Mortgage investment corporations are commonly used in Canada to pool investor capital and finance residential or commercial mortgages, with investors generally expecting returns generated from interest paid by borrowers and supported by underlying real estate collateral.
The OSC alleges that Altmore did not build the mortgage portfolio investors had been promised. While some legitimate real estate loans were arranged, the regulator said most of the C$5.3 million raised was not invested as represented.
OSC Alleges C$3 Million Repaid Using Newer Investor Funds
According to the regulator, approximately C$3 million was repaid to investors during the scheme, with those repayments typically funded using money contributed by newer investors rather than investment returns generated by mortgage lending. The OSC also said McSevney directed approximately C$1 million toward credit card payments, family members and relatives. The regulator noted those payments were funded through a combination of investor money and other sources.
Although the OSC did not describe the operation as a Ponzi scheme, the allegation that investor repayments were largely financed with funds from subsequent investors reflects a pattern commonly seen in investment fraud cases where promised investment returns are not supported by the underlying business activity.
Bonnie Lysyk, Executive Vice President of Enforcement at the OSC, said the outcome demonstrated the regulator's commitment to protecting investors and maintaining confidence in Ontario's capital markets. "Investors should expect that their money will be used as represented. Mr. McSevney raised millions from investors for what was presented as a mortgage investment corporation but most of those funds were not invested as promised. This has no place in Ontario, and this outcome reinforces our commitment to protecting the integrity of our capital markets."
Court Schedules Sentencing Date for 8 September 2026
McSevney's case will return to court on 8 September 2026, when the parties are expected to schedule a date for sentencing submissions. The guilty plea resolves the underlying allegations regarding fraud and illegal securities distribution.
The OSC's Criminal Investigations and Prosecutions team led the investigation. The unit investigates securities-related fraud, market manipulation and other serious breaches of Ontario securities law, while prosecutions involving Criminal Code offences are conducted by Ontario's Ministry of the Attorney General.
FAQ
What did Ian Ross McSevney plead guilty to on 15 July?
Ian Ross McSevney pleaded guilty to fraud and distributing securities without filing a prospectus, contrary to Ontario securities law. McSevney was the sole directing mind of Altmore Mortgage Investment Corporation, which raised nearly C$5.3 million from approximately 30 Ontario investors between May 2015 and May 2019.
How did the OSC allege investor funds were used in the Altmore case?
The OSC alleges that while investors were told their money would fund mortgages and loans secured by real estate, most of the C$5.3 million raised was not invested as represented. Approximately C$3 million was repaid to investors using funds from newer investors rather than investment returns, and approximately C$1 million was directed toward credit card payments, family members and relatives.
When is Ian Ross McSevney's sentencing scheduled?
McSevney's case will return to court on 8 September 2026, when the parties are expected to schedule a date for sentencing submissions. The guilty plea resolves the underlying allegations regarding fraud and illegal securities distribution, although the court has yet to determine the appropriate sentence.
