Chatham-based directors accused of using new investor funds to repay old ones and misusing capital
The Ontario Securities Commission (OSC) has laid criminal charges against three directors of Banknote Capital Inc., alleging they defrauded investors of over $11m.
According to The Globe and Mail, the accused — Ryan Rumble, Michael Dziedzic, and Justin Foss, all of Chatham, Ontario — promised high returns and guaranteed principal between November 2020 and August 2023.
The OSC charged each individual with one count of fraud over $5,000 under Section 380(1)(a) of the Criminal Code.
In addition, Rumble faces one count of uttering a forged document under Section 368(1)(a).
The Commission alleges that funds from new investors were used to repay earlier ones and that some funds were diverted for Rumble’s personal use.
Dziedzic and Foss surrendered to authorities and were released on undertakings, according to an OSC news release. A Canada-wide warrant has been issued for Rumble's arrest.
The investigation, led by the OSC’s Criminal Investigations team, stemmed from Project Swan — a joint effort between the OSC and the Durham Regional Police Service (DRPS).
That project also resulted in criminal charges against Aiden Pleterski, known publicly as the “crypto king,” and his associate Colin Murphy.
The OSC acknowledged the assistance of the Chatham-Kent Police Service and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
The Commission encouraged any individuals who were solicited by Rumble, Dziedzic, or Foss, or who invested in Banknote Capital, to contact its Contact Centre. It also thanked those who had already come forward with information.
In its press release, the OSC reiterated its investor protection mandate and urged the public to verify the registration of any individual or firm offering investments or advice.
None of the allegations have been proven in court.
