Fraud Allegations Emerge in BG Wealth Group Investigation by Ontario Regulators
The Ontario Securities Commission is now investigating suspected fraud at BG Wealth Group and has filed to extend a trading ban as investors report losses and records remain incomplete.
The Ontario Securities Commission (OSC) is now investigating suspected fraud as part of its ongoing probe into BG Wealth Group, whose real estate “Growth Fund” raised millions for investment in downtown Owen Sound properties. In a motion dated January 26 and published this week, the OSC is seeking to extend the existing cease trade order through August 6, 2026.
OSC’s request cites growing concerns that Craig Dunkerley, Claudia Harvey, and several affiliated companies may have violated multiple provisions of Ontario securities law, including fraud under subsection 126.1(1)(b) of the Securities Act.
The Commission argues that BG Wealth’s deficient recordkeeping and continued promotion of investment products after ceasing payments are among the reasons additional time is needed to complete the investigation and determine whether enforcement action is warranted.
Among the Commission’s latest findings:
BG Wealth Group allegedly ceased making payments to many investors by November 2023 due to cash flow issues.
Despite this, the group continued to promote and sell securities, including promissory notes advertising 16% annual returns.
Investor funds were reportedly commingled into a single BGRE account, then moved through multiple intercompany transfers—complicating efforts to trace the use of funds.
The OSC says BG Wealth has failed to provide a complete investor list, promissory notes, portfolio statements, or general financial records. Investigators are working to reconstruct this information through bank records and documents received from investors.
Some investors were told the company had “strong” cash flow and that its lending program “beats” any bank account or institutional investment product.
The OSC also noted concerns that the group may attempt to attract new investors in future as a strategy to repay existing obligations.
Although Dunkerley initially denied Claudia Harvey’s involvement, the OSC says it has found evidence that she is the co-founder and President of BG Wealth Group, and that she served as a director of BG Wealth Group Inc., the Fund Manager, and the Fund GP.
This also marks the first time fraud has been explicitly listed among the possible violations under investigation.
The motion will be heard by the Capital Markets Tribunal before the current order expires in February. If granted, the extended order would continue to prohibit Dunkerley, Harvey, and their companies from trading in securities, relying on exemptions, or engaging in any activity in furtherance of a trade.
Investors who have been approached by BG Wealth Group, Dunkerley, or Harvey are encouraged to contact the OSC Inquiries and Contact Centre at 1-877-785-1555 or inquiries@osc.gov.on.ca.
Continue reading below for a full background on the OSC investigation, BG Wealth Group’s operations in Owen Sound, investor complaints, and municipal oversight concerns.
Investigation Into BG Wealth Began with Investor Concerns Over Owen Sound Dealings
The Ontario Securities Commission (OSC) first issued a temporary cease trade order against BG Wealth Group, its founders Craig Dunkerley and Claudia Harvey, and a number of affiliated entities on February 6, 2025.
The regulator cited concerns that the group was raising capital from investors without proper registration or filing the required prospectus documents under Ontario securities law, allegations that served as the basis for an investigation that has been ongoing since.
The order prohibited BG Wealth Group and associated companies — including BGRE Capital Corporation, BG Wealth Group Inc., BG Wealth Group Growth Fund LP, BG Wealth Holdings Corporation, BG Wealth GP Inc., BG Wealth Properties Inc., BG Property Holdings Inc., and Blackthorn Investment Group Inc. — from trading securities or relying on exemptions that would allow them to raise funds from the public.
That order has since been extended twice, most recently on October 3, 2025. According to the Capital Markets Tribunal, the respondents did not oppose the extension.
Previous OSC filings allege that at least $11.6 million was raised through two BG Wealth investment vehicles: $2.9 million through BGRE Capital promissory notes and $8.7 million through the BG Wealth Group Growth Fund.
A growing number of investors have come forward with complaints of missed payments and difficulties redeeming their investments. Several appeared on The Canadian Real Estate Show in February 2025 to share their experiences, with individual reported losses ranging from $30,000 to over $770,000.
While Dunkerley has denied any wrongdoing, claiming that his firm is not required to register with the OSC due to its focus on real estate, the regulator maintains that the group was engaged in trading activities that fall under securities law.
And with this new filing, OSC is reporting the evidence reviewed so far leads them to believe BG Wealth Group may have “engaged or participated in acts, practices or courses of conduct relating to securities that they knew or reasonably ought to know perpetrated a fraud.”
The regulator noted in this most recent filing that is has been trying to “create its own investor list from various sources of information, including bank records and documents obtained from investors” and “obtain, review and analyze information and documents from BG Wealth Group’s investors, mortgage lenders and banks” in the absence of information from BG Wealth itself.
Dunkerley: Just a Few “Dissatisfied Investors”
In a February 2025 email to investors, Dunkerley described the OSC’s probe as the result of a few “dissatisfied investors” and said the company’s fund structures were reviewed by legal counsel. He added, “We remain fully committed to transparency and compliance.”
However, investor complaints have intensified since interest payments reportedly stopped in late 2023, and attempts to reach BG Wealth Group for redemptions or clarification have gone unanswered.
In addition to mounting investor complaints and regulatory scrutiny, BG Wealth Group has faced insolvency issues through affiliated companies. Dig It Apparel, a separate business venture led by Harvey and directed by Dunkerley, filed for bankruptcy in April 2024 owing more than $6 million to creditors.
Despite all of this, Dunkerley has continued to maintain in public communications that investors will be repaid and the company is operating within legal boundaries.
He has not agreed to interviews but has provided Owen Sound Current written statements asserting that the group’s financial difficulties stem from broader economic factors, including rising interest rates and high tenant turnover.
Impact on Owen Sound’s Rental Market
BG Wealth Group acquired Owen Sound properties as part of its real estate investment strategy, and promotional case studies—since removed from the company’s website—highlighted sharp increases in rental revenue.
At 261–281 9th Street East, the company claimed to boost gross rental income from $127,000 to $235,290. At 950–956 2nd Avenue East, it reported an increase from $28,800 to $187,692 annually.
In an email to Owen Sound Current, CEO Craig Dunkerley cited “significant turnover in tenants,” “abandoned units,” and unpaid rents as contributing to BG Wealth Group’s cash flow issues, which ultimately led to a pause in investor distributions beginning in late 2023.
Records obtained by Owen Sound Current through a Freedom of Information request show the group owed over $286,000 in property tax arrears across five local properties as of October 2024.
By November, three of those properties had been seized under court-ordered receivership following legal action by Kindred Credit Union over millions in unpaid mortgages and guarantees, leaving their long-term ownership and tenancy conditions uncertain.
City of Owen Sound Interactions with BG Wealth Group Raise Questions
BG Wealth Group’s operations in Owen Sound have included multiple documented interactions with the City.
In November 2022, the City transferred a strip of riverfront land behind 942–944 2nd Avenue East to 10603503 Canada Inc., a company solely directed by Craig Dunkerley, via quit claim transfer. The transaction was authorized by a City bylaw after the land, along with neighbouring lots, was declared surplus to harbour needs.
Earlier that year, a City of Owen Sound management-level employee appeared in a promotional video produced by BG Wealth Group to showcase the firm’s downtown properties — a move that may have contributed to the perception of municipal support for the company’s investment activities.
In addition, the property tax arrears accrued by BG Wealth Group companies across five Owen Sound properties between 2021 and 2024 typically trigger formal enforcement notices and communication between municipal staff and property owners.
In January 2025, Owen Sound Current filed a Freedom of Information (FOI) request seeking all email correspondence between City of Owen Sound staff and BG Wealth Group and its representatives.
While the City disclosed some building and fire inspection documents in August 2025 for a $292 fee, it reported no responsive records related to the land transfer, tax arrears, or the employee’s participation in the promotional video.
Owen Sound Current has filed for adjudication with the Information and Privacy Commissioner of Ontario after an unsuccessful mediation process, arguing that the City has not conducted a reasonable search of its records in response to the FOI request—particularly given that publicly visible interactions with BG Wealth Group appear inconsistent with the City’s claim that no related correspondence exists.
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Bravo for your stellar journalism to get the ball rolling on this investigation!