July 9, 2025
8 Odd Moves Stir Suspicion Over Delviro’s Demise
Vehicles sold for $1. A cigarette stuffing machine. And a strange trail of money moves
The LED lighting game doesn’t usually involve cigarette stuffing machines, seven company cars sold for pocket change, or inventory that simply evaporates. But that’s the puzzle Ernst & Young is trying to solve after taking over the wreckage of Delviro Energy — which, until recently, was an LED lighting manufacturer in Ontario, Canada.
National Bank of Canada says Delviro owes it over $5 million. By the time the bank called the loan, the lights were already off — and the assets, it seems, were halfway out the back door.
Now, with expanded powers that let them dig like bankruptcy trustees, Ernst & Young is turning over every box, server, and bank statement they can get their hands on. Their early findings? A trail of eyebrow-raising deals that mostly lead back to Joe Delonghi — Delviro’s sole owner and director — and, in some cases, his family.
Delonghi strongly disputes the allegations, saying the company’s downfall was due to harsh market conditions and a lack of flexibility from National Bank. He says the unusual money movements were longstanding, transparent cash flow support between his companies — and that he personally invested millions, took no salary and only wanted to keep Delviro alive for its employees.
1. Missing Equipment Next Door
Ernst & Young says that when they arrived nearly half of Delviro’s factory equipment — as listed in a 2024 appraisal — was gone. They later found it tucked away in a neighboring unit. Delonghi claimed he sold it just weeks before the shutdown. The alleged price? Well below market. And the payments didn’t go to Delviro — they reportedly went to another company Delonghi owns. Some money even changed hands after Ernst & Young took control — a major red flag.
2. Seven Cars for $1 Each
Seven company vehicles were reportedly transferred to Delonghi’s wife and his other company, Lighting Funds Investements, for $1 plus tax per vehicle.
The last item, listed as a 2017 Mercedes-Benz Bentayga, appears to be a 2017 Bentley Bentayga based on the VIN SJAAC2ZV9HC015372.
Delonghi says some of these vehicles were sold to his other company before the bank’s involvement, and kept under Delviro’s name for insurance reasons. He says other vehicles were leased and returned, or personally bought out by family members. Ernst & Young disputes the legitimacy and documentation of these explanations.
3. Over $1 Million in Mysterious Transfers
Ernst & Young says that between October 2024 and March 2025, more than $1 million in cash moved between Delviro and companies or accounts tied to Delonghi — with no clear business explanation. Ernst & Young flagged this as highly irregular.
4. Millions Moved Between Companies
During just four months in 2024, Delviro funneled about $14.4 million in and $13.1 million out through other businesses linked to Delonghi. According to Ernst & Young, these were not normal operating expenses — and the true purpose remains a mystery. Delonghi says these cash movements were normal intra-company funding to cover shortfalls, with the bank’s knowledge.
5. Construction Equipment at Delonghi’s House?
Ernst & Young says Delviro’s money was used to buy construction equipment — which then turned up not at the factory, but at a personal property owned by Delonghi himself. Where else the company’s money went is still under the microscope. Delonghi says these were legitimate company-related transactions.
6. The Cigarette Stuffing Machine
Of all the irregularities Ernst & Young flagged, one stands out for its sheer incongruity: an unlicensed “MK 9.5 cigarette stuffing machine” buried in the financial records of an LED lighting company — the kind that requires special federal and provincial licenses just to own in Ontario.
Under Canada’s Excise Act, even providing a machine for someone else to roll their own smokes makes you a tobacco manufacturer in the eyes of the law. Ontario’s Tobacco Tax Act demands anyone importing or possessing cigarette-making gear register as a manufacturer. Delviro seemingly did neither. Instead, customs seized the machine at the border, raising a question that Ernst & Young is still chasing: what was an LED lighting company doing with unlicensed tobacco equipment in the first place — and what else was going on behind the factory door?
7. Records Locked Up or Vanished
At first, Delviro’s former finance manager helped Ernst & Young piece together what happened. Then, she suddenly became “unavailable” — even after EY offered to pay her for her time. Meanwhile, key digital records live on a server in the unit next door, which EY can’t fully access. As they told the court: “Significant information is missing.”
8. Inventory worth $5.3 Million — Gone
The company’s books said there was about $5.3 million in inventory on hand. When EY looked, they found a “nominal amount.” In other words: nearly all of it was seemingly gone.
Where This Goes Next
National Bank has been given the green light for an early payout — up to $600,000 — from whatever Ernst & Young can scrape up at auction. And the court has backed EY to push even harder: they can examine Delonghi and his inner circle under oath, investigate questionable deals, and, if needed, push Delviro into full bankruptcy to force disclosure.
Justice Dietrich didn’t mince words: “The Debtor may have significant claims against [Delonghi’s companies] and others. The Receiver can only maximize the value… if it has the best available information.”
For now, the lights are off — but the hunt is very much on.
