An Ontario Superior Court of Justice endorsed PricewaterhouseCoopers Inc. as receiver and manager of the assets of Sextant Strategic Opportunities Hedge Fund L.P. and other Sextant funds on Friday.

The other funds are Sextant Capital Management Inc. and Sextant Capital GP Inc.

The funds are caught up in an investigation by the Ontario Securities Commission.

In their submission to the Superior Court of Justice on April 30, 2009, OSC staff said they “had significant concerns with respect to Sextant and that these problems include potential fraud, potential misappropriation of investor money, misrepresentations, self-dealing by the fund managers, and numerous and significant recordkeeping inaccuracies and apparent record manipulation.”

In statement released Friday evening Friday, the OSC said, the court concluded “a receiver is necessary as being in the best interests of the Sextant Canadian Fund security holders (its investors), appropriate for the due administration of Ontario securities law and to ensure that investors’ funds are managed and potentially distributed, in an orderly fashion.”

IE