OSC found FactorCorp misled 600 investors on $50.4m of debentures
FactorCorp Inc. · Debenture-funded commercial lender
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Collateral & double pledge
Registry searches would show loans lacked registered security and the resort was already mortgaged above $30 million.
Can mislead when: Pledges made off the registries stay invisible, and vague invoice descriptions are hard to match.
End-use tracing of funds
Tracing the Express Commercial Services advances would show they funded a resort build.
Can mislead when: Kubr sees only the company's own accounts. Once money reaches a third party's bank, Kubr can flag the payee but cannot see the next hop without that party's consent.
Third-party confirmation
Direct confirmation from borrowers would test the claimed loan terms and security.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Regulatory & litigation records
The commission file would show the offering memoranda were not filed.
Can mislead when: Court records lag and name spellings vary. A clean record can mean the problem has not reached court yet.
Where Kubr services would have helped
Borrower monitor
Offered in India- C6 Tracing the Express Commercial Services advances would show they funded a resort build.
- C8 The commission file would show the offering memoranda were not filed.
- C13 Registry searches would show loans lacked registered security and the resort was already mortgaged above $30 million.
Verified Snapshot
Offered in India- C8 The commission file would show the offering memoranda were not filed.
- C13 Registry searches would show loans lacked registered security and the resort was already mortgaged above $30 million.
Legal diligence support
Offered in India- C8 The commission file would show the offering memoranda were not filed.
- C13 Registry searches would show loans lacked registered security and the resort was already mortgaged above $30 million.
Rating history
Offered in India- C8 The commission file would show the offering memoranda were not filed.
- C13 Registry searches would show loans lacked registered security and the resort was already mortgaged above $30 million.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.