The obvious conclusion is that management of the firm fears that the release of the client records will show that transfers of client funds were made illegally, and without client authorization, and that Northland is not only liable to them for their entire loss, its principals and managers may have committed a number of felonies, which could result in prison time. The other possible outcome is the total loss of securities licenses, and the dissolution of the firm, by the Ontario Securities Commission.
Eventually, the judge assigned to the case will most likely order them to produce the clients' records, and the investing public will learn the extent of illegal activities anyway, so why stonewall the lawsuit ? we cannot say, but dilatory action, in a civil suit, always comes to the Court's attention, and the judicial response is generally harsh. Does Northland Wealth Management really want to risk having a court-appointed receiver on its premises, on a full-time basis ?
Lawrence Heath et al vs. Northland Wealth Management, Inc., Case No.: CV 16-550303 ( Superior Court of Justice, Ontario)