Cathie Wood-Linked ETF Firm, Emerge Canada, Allegedly Violated Securities Law

Emerge Canada Inc., an investment firm known for selling Toronto-listed versions of Cathie Wood’s popular exchange-traded funds, has allegedly violated securities laws, according to Ontario’s securities regulator.

The Ontario Securities Commission alleges Emerge “acted in its own interests by knowingly taking an estimated C$6 million of investor money in self-dealing loans over a period of nearly four years,” or $4.2 million, it said in a statementBloomberg Terminal. Most of the diverted money was allegedly used to prop up Emerge’s own businesses that were in financial distress, the regulator said.