Three Chatham men affiliated with Banknote Capital Inc. are facing fraud charges following a criminal investigation.
According to an Ontario Securities Commission media release, Banknote directors Ryan Rumble, Michael Dziedzic and Justin Foss are each charged with one count of fraud over $5,000. Rumble is also charged with one count of utter a forged document.
The OSC alleges that from November 2020 to August 2023, the accused men raised more than $11 million from investing by promising high rates of return and guaranteed principal.
Further allegations state that funds collected from new investors were used to repay existing investors, and money was diverted to Rumble for his personal benefit.
Both Dziedzic and Foss surrendered to authorities and have been released on an undertaking. A Canada-wide warrant has been issued for Rumble’s arrest.
The investigation stemmed from Project Swan, a joint investigation by the Durham Regional Police Service and the OSC, resulting in criminal charges against Aiden Pleterski and Colin Murphy. The Chatham-Kent Police Service also contributed to the investigation, as well as the Financial Transactions and Report Analysis Centre of Canada.
Anyone who was solicited by any of the accused, or who invested in Banknote, can contact the OSC at 1-877-785-1555 or email [email protected].
Individuals who are considering investing are invited to check out the legitimacy of the business online at Check Before You Invest and osc.ca.
