Equity firm accuses rival of covertly targeting employees

West Face Capital Inc. has accused another Toronto private equity firm of hiring an Israeli intelligence firm linked with disgraced movie mogul Harvey Weinstein to covertly get confidential information from employees and elicit disparaging comments from a retired Ontario Superior Court judge.

West Face filed a motion in Ontario court seeking information obtained from Black Cube’s investigation of its staff and former workers. The parties will appear in court on Friday.

It alleges Catalyst Capital Group Inc. used Black Cube, which is comprised of former intelligence officials, to launch illegal covert investigations against the company and former Ontario Superior Court Justice Frank Newbould in order to bolster a legal appeal.

Catalyst is appealing a ruling by Newbould in August 2016 that dismissed its claim in the loss of a bidding war for wireless carrier Wind Mobile Corp.

West Face alleged the Black Cube’s activities were undertaken “on false pretences, using lies, deception, false identities, and false offers of employment or investment.”

“The purpose of these investigations was to manufacture evidence that could be used by Catalyst during the course of this appeal,” said the lengthy court filing.

It claims Black Cube operators used lies and deception to entrap employees and Newbould to get damaging statements and information to discredit Newbould’s ruling.

One “sting” against the retired judge was intended to bait Newbould into making anti-Semitic comments. Another was allegedly targeted at former West Face general counsel Alexander Singh.

West Face said the behaviour “mirrors” Black Cube’s actions on behalf of Weinstein, who has been accused of sexual harassment.

Weinstein hired Black Cube to get information on those working to expose allegations against him.

The firm subsequently apologized for its work and pledged to donate proceeds to women’s groups.

West Face said it has been unable to verify the accuracy and completeness of transcripts and recordings of Black Cube’s activities, including the surreptitious recordings with employees.

“We are saddened that innocent people have been misled, intimidated and emotionally impacted by this disreputable and unseemly conduct,” it said.

Neither Catalyst nor Black Cube could be reached for comment. The allegations haven’t been proven in court.