OSC Seeks Bankruptcy Order Over $14.4M Hotel Developer Sanctions

Those efforts failed. In late 2025, the City of Buffalo started proceedings in New York State Supreme Court to have the hotel declared abandoned. Stinson has opposed that action. The proceedings are ongoing.

The OSC has run out of patience. "Mr. Stinson has been unable to demonstrate a viable path toward making investors whole, and addressing the sanctions ordered against him," the regulator said. "Today's application for a bankruptcy order is necessary to try to resolve this long running case and potentially obtain disgorgement amounts that could be distributed to harmed investors."

A hearing on the OSC's application is scheduled for Sept. 23.

Last year, the tribunal rejected a separate application from Stinson to reduce the sanctions. He argued the penalties were preventing him from securing new financing and returning money to investors. The tribunal ruled that Stinson failed to prove removing the sanctions was justified or in the public interest.