Stinson Bankruptcy Bid
Ontario Regulators Seek Bankruptcy Order Against Harry Stinson for $13M Unpaid Penalties
The Ontario Securities Commission has moved to force Harry Stinson into bankruptcy after he failed to pay more than $13.6 million in fines and costs, according to National Post. The OSC filed an application under Canada's Bankruptcy and Insolvency Act to get a court order declaring Stinson bankrupt and placing a trustee in charge of his assets.
The Capital Markets Tribunal ordered those penalties against Stinson in December 2023. He was found to have broken Ontario securities law while raising money from investors for a hotel renovation project in Buffalo, New York, Ottawa Sun reported. He has not paid since.
$13 Million Penalty Stinson Has Refused to Pay
The Capital Markets Tribunal hit Stinson with two separate financial penalties. The first was over $13 million in disgorgement — money he must return because he gained it through misconduct. The second was $600,000 in administrative penalties, according to Montreal Gazette. Together, the total topped $13.6 million.
Disgorgement is a legal tool that forces someone to give back money they made illegally. The OSC uses it to make sure bad actors do not profit from breaking the rules. Stinson was given several chances to comply after the December 2023 ruling. Each time, he did not pay, Ottawa Sun reported.
Buffalo Hotel at the Center of the Fraud Case
Stinson raised investor funds to renovate the Buffalo Grand Hotel in Buffalo, New York. The OSC found that he and his companies broke Ontario securities law in how they collected that money. Investors were not properly protected under the rules that govern how companies can raise capital.
The hotel itself is now in serious trouble. In December 2025, the City of Buffalo began a process to have the Buffalo Grand Hotel declared abandoned, according to National Post. The city cited an order to vacate, unpaid taxes and fees, and other violations. A public hearing on the hotel's fate is scheduled for September 23, 2026.
OSC Turns to Bankruptcy Court to Collect
When a person does not pay a securities penalty, regulators have limited tools to force payment. Filing a bankruptcy application is one of the strongest moves available. If a court grants the order, a trustee takes control of Stinson's assets and can sell them to pay creditors — including the OSC, Montreal Gazette reported.
The OSC's application is a public signal that the regulator will pursue unpaid sanctions aggressively. The move puts Stinson's personal finances directly under court supervision. It also means he would lose control over how his assets are managed or sold.
What Comes Next for Stinson and His Creditors
A public hearing on the Buffalo hotel's abandoned status is set for September 23, 2026, according to Owen Sound Sun Times. That hearing could result in the city taking action on the property. Combined with the bankruptcy application, Stinson faces pressure from both Canadian regulators and American authorities at the same time.
The OSC has not said when a court date for the bankruptcy application will be set. If the order is granted, investors harmed by Stinson's conduct could potentially recover some of their losses through the bankruptcy process. That outcome, however, depends on what assets the trustee is able to find and sell.
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