TORONTO — When investors poured tens of millions into Ontario investment company New Solutions Inc., they were assured their money would be safe, and would provide “above market returns” through investments backed by receivables from companies with solid “A” credit ratings or better.
It must have come as a shock to some that among the companies eventually supported by their money was Death Row Records — the faded hip-hop record label that once represented such stars as Tupac Shakur and Snoop Dogg. Another was a bankrupt dried food company that had hoped to capitalize on disaster relief.
Details of the firm’s investments, loans, and communications with investors, are contained in legal filings related to the firm’s insolvency and in allegations made by the Ontario Securities Commission.
New Solutions raised a total of more than $200-million from investors, most of it between 2009 and 2011.
Some of the money was loaned to…
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