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.
A golden year for Golden Opportunities.(Grant Kook's company wins labour sponsored investment fund of 2004)
Feb 01, 2005; When Grant Kook, CEO and chairman of Golden Opportunities Fund, launched the province's first labour sponsored investment fund in...