FORMERLY listed company Equityline Mortgage Investment Corporation (ELMIC) has been placed into receivership following the arrest of founder Sergiy Shchavyelyev in Ontario, Canada.

ELMIC was put in receivership on Monday by Justice Jana Steele in the Ontario Superior Court of Justice. The request was brought by Alexandra Lozovski and five other applicants who are seeking to have an investigation done into ELMIC to determine what happened to the money received by the company.

“For the reasons set out below, the receivership order is granted and EMIC’s motion is dismissed.,” Steele noted in her ruling.

As a result, Harris & Partners Advisory Inc is now the receiver and manager over the properties and assets of ELMIC.

ELMIC is a Canadian mortgage investment corporation that was listed on the Jamaica Stock Exchange (JSE) between January 2019 to October 2024. The company raised US$5.37 million ($839.91 million) from at least 140 Jamaican investors through the issuance of series A redeemable preferred shares. Investors were paid preferred dividends at an 8.0 per cent yield which totalled approximately US$2.15 million over the five years the company maintained its payments.

However, when the company was scheduled to repay investors in January 2024 it instead announced two extensions before being suspended from trading twice in mid-2024 and was ultimately delisted. Sagicor Group Jamaica’s unit trust and pooled funds own two-thirds of these preferred shares, along with regular investors.

It was revealed during 2024 that Equitable Bank had placed EquityLine SPV Limited Partnership in receivership through the appointment of KSV Restructuring Inc as receiver. Equitable Bank discovered breaches in the reporting obligations of the SPV and later discovered that some of the mortgages Equitable thought were on EquityLine SPV’s books as its security were discharged or postponed without the knowledge of Equitable or Computershare Trust Company of Canada (CTCC), the custodian of the mortgages. Justice Steele approved the appointment of the receiver for the SPV in August 2024. ELMIC is a limited partner in the SPV.

ELMIC and its manager EquityLine Services Corporation dodged receivership in December 2024 but KSV’s investigative powers had expanded into discovering the developments taking place with the affiliated firms.

EquityLine founder Shchavyelyev was charged in December 2025 by the York Regional Police with six counts of fraud over CAD$5,000. These charges are related to an investment scam investigation where at least five victims reported him to the police over CAD$2.5 million (US$1.80 million) invested via himself and his company, EquityLine Service Corporation.

The Financial Services Regulatory Authority of Ontario refused to renew the Russian/Ukrainian immigrant’s mortgage broker licence on February 6 due to false statements and his past conduct.

When brought under examination by Justice Steele in a recent hearing he stated, “Right now, currently, there is – all the mortgage portfolio is fully in default and in collections.”

It was revealed in a November 2025 hearing for EquityLine SPV that there were at least six elderly mortgagors who were claiming that their mortgages were fraudulently disbursed. One elderly victim known as Margaret Jank had her mortgage and related charges on her property deleted by a ruling from Justice Jessica Kimmel.

With ELMIC claiming that is insolvent, Jamaican investors are left to wait on the legal process to be completed in Canada before learning what they might recover from the company. ELMIC’s 2023 audited financials being withdrawn after the company’s auditors, Grant Thornton LLP in Canada, requested ELMIC withdraw its auditors report.

“The receiver, a third-party licensed trustee, will have the power, among other things, to determine what assets, if any, EMIC has for distribution to its creditors and the priorities, and investigate and hopefully provide the investors with the information they are missing,” Justice Steele closed.