The operators of a Toronto-based hedge fund, Yonge Street Capital LLC (YSC), are facing quasi-criminal charges from the Ontario Securities Commission (OSC).
The regulator has brought charges against three men alleging that money raised by the hedge fund they established was diverted for other purposes and thereby harmed investors.
According to the OSC, over $6.2 million was invested in the fund between October 27, 2016 and August 30, 2019.
However, the regulator alleges that “a significant percentage of the money” was used “for purposes unrelated to YSC’s business, and to the detriment of investors.”
The founders of the fund — Nathanael Anthony Aikman of Coquitlam, B.C., and a pair of Toronto area residents, Syed Saad Aziz and Jazib Ali Khan — have all been charged by the commission.
Aikman was charged with one count of fraud, one count of trading without registration and one count of trading without a prospectus.
Aziz and Khan are both charged with trading without registration and trading without a prospectus.
None of the allegations have been proven.
The first court appearance in the case is scheduled for Jan. 18, 2021 at Old City Hall Provincial Court in Toronto.