Usman Asif charged with fraud and contravening an Ontario Securities Commission order

TORONTO – The Ontario Securities Commission (OSC) announces that Mr. Usman Asif has been charged with fraud, contrary to s. 126.1(1)(b) of the Securities Act, as well as breaching a cease trade order.

The charges announced relate to Lendle Corporation where Mr. Asif was a director.

The OSC alleges that Mr. Asif, through his company, Lendle Corporation, issued a security in the form of a promissory note to All Ships Investors Incorporated (“All Ships”) while subject to a cease trade order. The OSC alleges that the transaction was part of a fraudulent scheme to issue and securitize consumer loans through an online lending platform. It is further alleged that Mr. Asif repeatedly deceived All Ships before and after accepting a $315,000 investment from them, which he spent primarily on personal expenses, including a Lamborghini.

On November 1, 2023, the OSC Tribunal found that Mr. Asif and his companies, Lendle Corporation and Mughal Asset Management Corporation, committed fraud. The Capital Markets Tribunal also determined that Asif lied to OSC staff during the investigation, shared confidential OSC information, and interfered with the OSC’s investigation.

Mr. Asif was permanently banned from trading in June 2024. Prior to that he was bound by a temporary cease trade order issued in December 2021.

This case was investigated by the OSC’s Criminal Investigations & Prosecutions team, which is part of the Enforcement Division of the OSC. They investigate securities-related frauds, market manipulation, and related misconduct, including the investigation of repeat offenders and those who breach Capital Markets Tribunal or court orders and bans. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. To do this, they often partner and collaborate with other law enforcement agencies and police forces.

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 http://www.osc.ca.

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