Catalyst Capital
Toronto private equity firm; Black Cube subcontractor in the 2017 Newbould sting
| The Catalyst Capital Group Inc.
| |
|---|---|
| Type | Private equity firm |
| Headquarters | Toronto, Ontario, Canada |
| Industry | Private equity |
The Catalyst Capital Group Inc. (Catalyst Capital) is a Toronto private equity firm founded by Newton Glassman. In 2017, after losing litigation against West Face Capital, Catalyst's lawyer retained a security contractor that subcontracted the Israeli private intelligence firms Black Cube and Psy-Group. Black Cube ran an undercover "sting" on the retired judge who had ruled against Catalyst. Two Ontario Superior Court rulings in 2021 set out the engagement, including a US$1.5 million base fee and per-item bonuses.
West Face litigation and retainer
In August 2016 Justice Frank Newbould of the Ontario Superior Court of Justice dismissed Catalyst's action against West Face Capital and former employee Brandon Moyse. Catalyst appealed. Newbould retired from the bench in June 2017.[1][2]
On 31 August 2017 Catalyst's lawyer Brian Greenspan retained Tamara Global, a security firm run by Yossi Tanuri, on Catalyst's behalf. Tamara subcontracted Black Cube and Psy-Group. On 6 September Glassman met investigators in London, "for the most part, Black Cube employees". Between 7 and 11 September Black Cube sent a draft letter of engagement with a US$1.5 million base fee plus "success fees"; Glassman added a handwritten "Bonus Legend" under which Black Cube would be paid US$75,000 "per item" of evidence that Newbould was biased against Catalyst or Glassman, was an anti-Semite, had a "deal" with West Face, or had another "inappropriate connection".[2][1]
Newbould sting
On 13 September 2017 a Black Cube operative approached Newbould posing as a prospective arbitration client. Operatives put him under surveillance. On 18 September the operative secretly recorded meetings at Newbould's office and over dinner while trying to elicit anti-Jewish remarks. The material was pitched to the National Post journalist Christie Blatchford, who on 24 November 2017 published an article exposing the sting and criticising Catalyst's conduct. The recordings were not used as fresh evidence on the appeal, which was later dismissed.[3][2][1]
Glassman deposed that he did not know of, or authorise, a pretext operation on Newbould. Greenspan's firm told Black Cube to "immediately desist" from such investigations "because that is not how things are done in Canada". A source told Blatchford that Catalyst had neither ordered nor known about the sting until afterwards.[2][3] Justice Boswell called the sting "remarkably improper" and "unvarnished random virtue testing or worse"; Justice McEwen agreed that Project Maple Tree was "ethically dubious". In December 2021 McEwen dismissed Catalyst's related defamation and "Wolfpack" actions under Ontario's anti-SLAPP law.[2][1]
The operation is covered in full on Frank Newbould sting. No other Black Cube engagement for Catalyst is described in the sources used for this page.
See also
Notes
- ↑ 1.0 1.1 1.2 1.3 Justice Thomas J. McEwen, The Catalyst Capital Group Inc. and Callidus Capital Corporation v. West Face Capital Inc. et al., 2021 ONSC 7957 (anti-SLAPP ruling), Ontario Superior Court of Justice, 2 December 2021 (PDF).
- ↑ 2.0 2.1 2.2 2.3 2.4 Justice Paul R. Boswell, The Catalyst Capital Group Inc. v. West Face Capital Inc., 2021 ONSC 125 (privilege ruling), Ontario Superior Court of Justice, 11 January 2021 (PDF).
- ↑ 3.0 3.1 Christie Blatchford, Exclusive: The judge, the sting, Black Cube and me, National Post, 24 November 2017.