Short Seller Who Called Goeasy Crash Praises ‘Come Clean’ Moment

Canadian subprime lender Goeasy Ltd. disclosed hundreds of millions of dollars in loan losses last week, sending its stock plunging. For Victor Bonilla, who had warned about the risks tied to the company’s financing business in September, it was time for a victory lap.

Bonilla, the short seller at Florida-based Jehoshaphat Research firm, called out Goeasy, saying it was holding C$300 million ($219 million) in improperly delayed credit losses and had unreported delinquencies buried in the balance sheet. Now after the company’s latest update, Bonilla is striking a positive tone: “My impression is that they’ve come clean about it.” ...