The mutual fund division of Montreal-based Norbourg Asset Management may soon be sold, according to the National Post.

Ernst & Young, which has been appointed administrator for the firm by government regulators as seeks it to recover $70 million in missing funds, says a number of larger financial institutions have shown an interest in Tandem Wealth Management, a division of Norbourg.

Norbourg currently faces allegations of mismanagement against its family of mutual funds. It has fewer assets than reported in its most recent financial statement, which is dated Dec. 31. The Financial Markets Authority, which is Quebec's principal securities regulator, claims that the missing money is in the personal account of Norbourg founder Vincent Lacroix, who reportedly used the money to fund Norbourg acquisitions.

Lacroix told the media recently that his financial career is over and he pledged to recover the money.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.