TORONTO, Nov 3 (Reuters) – An Ontario court on Friday placed Canadian hedge fund Traynor Ridge Capital and the funds it manages in receivership after the sudden death of its sole director, as the provincial securities regulator probes millions of dollars of trading losses incurred by brokers.

The Ontario Securities Commission (OSC) issued a temporary order against Traynor this week that prohibited all trading in any securities by or of the firm and in three of the funds it manages to bring stability to the hedge fund’s operations.

The regulator said it was informed on Saturday that Christopher Callahan, the sole director, officer and shareholder of Traynor, was dead, leaving the firm without a director or officer in charge of the firm.

A Toronto police spokesperson on Tuesday said Callahan’s death was not considered suspicious and there was no investigation.

During the week of Oct. 23, trades were executed for Traynor by three firms but their carrying broker could not recapture the costs of the trades, the OSC said on Monday. The regulator said this resulted in the three dealers having losses totalling about C$85 million ($62.22 million) to C$95 million.

“It appears to the Commission that Traynor is in serious financial difficulty,” the Ontario securities regulator said in its filing.

Traynor did not answer a call seeking comment and did not respond to an emailed request for comment.

The Toronto-based alternative investment management firm manages three prospectus-exempt funds known as the TR1 Funds, according to its website.

($1 = 1.3662 Canadian dollars)

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