OSC charges Ryan Rumble, Michael Dziedzic, and Justin Foss with fraud

TORONTO – Ryan Rumble, Michael Dziedzic and Justin Foss of Chatham, Ontario have each been charged with one count of fraud over $5,000 contrary to Section 380(1)(a) of the Criminal Code (Code). Mr. Rumble is also charged with one count of Utter Forged Document contrary to Section 368(1)(a) of the Code.

The charges relate to Banknote Capital Inc. (Banknote). The three individuals were all directors of Banknote.

The Ontario Securities Commission (OSC) alleges that from November 2020 to August 2023, the accused raised more than $11 million from investors by promising high rates of return and guaranteed principal. The OSC further alleges that funds collected from new investors were used to repay existing investors and funds were diverted for the personal benefit of Mr. Rumble.

Mr. Dziedzic and Mr. Foss surrendered to authorities, and were released on an undertaking. A Canada-wide warrant for Mr. Rumble’s arrest has been issued.

This investigation originated from Project Swan, a joint investigation by the Durham Regional Police Service (DRPS) and the OSC that also resulted in criminal charges against Aiden Pleterski and Colin Murphy.

This investigation was conducted by the Criminal Investigations team within the OSC’s Enforcement Division. The OSC wishes to acknowledge the assistance of the Chatham-Kent Police Service, and the Financial Transactions and Reports Analysis Centre of Canada.

Any investors who were solicited by Mr. Rumble, Mr. Dziedzic or Mr. Foss, or who invested in Banknote, should contact the OSC’s Contact Centre at 1-877-785-1555 (Toll Free) or [email protected]. The OSC would like to thank all those who have come forward with information to date.

The OSC urges investors to always check the registration of any person or business trying to sell them an investment or provide investment advice. This can be done by visiting the Check Before You Invest and Registered crypto asset trading platforms pages on the OSC website.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets, and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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