Three Chatham men have been charged with fraud by the Ontario Securities Commission (OSC).
Ryan Rumble, Michael Dziedzic, and Justin Foss have each been charged with one count of fraud over $5,000. Rumble is also charged with one count of forging a document.
The men were all directors of Banknote Capital, a Chatham investment company.
In May 2023, a large group of local investors alleged the company defrauded them out of $5 million.
The OSC alleged that from November 2020 to August 2023, the three accused raised more than $11 million from investors by promising high rates of return and guaranteed principal, but the local investors alleged they were duped and did not receive a "full" return on their investment.
The OSC alleged that the funds collected from new investors were used to repay existing investors and that funds were diverted for the personal benefit of Rumble.
Dziedzic and Foss surrendered to authorities and were released with court conditions.
A Canada-wide warrant for Rumble’s arrest has been issued, but he is currently working in Dubai.
This OSC investigation started a few years ago and also resulted in criminal charges against Aiden Pleterski, the self-proclaimed Ontario "Crypto King", and Colin Murphy, Pleterski's associate.
Chatham-Kent police helped with the investigation, noted the OSC.
Any investors who were solicited by Rumble, Dziedzic or Foss, or who invested in Banknote Capital, should contact the OSC’s Contact Centre at 1-877-785-1555 (Toll Free) or inquiries@osc.gov.on.ca.
"The OSC would like to thank all those who have come forward with information to date," the commission said.
The OSC urges investors to always check the registration of any person or business trying to sell them an investment or provide investment advice by visiting the Check Before You Invest and Registered crypto asset trading platforms pages on the OSC website.
Click here for OSC investor resources.