Manitoba corporation pursues legal claims against ex-CEO for suspected financial misuse, as depicted in court papers
Former Funding Change CEO Accused of Financial Misconduct
In a shocking turn of events, Nicholas Tenszen, the former CEO of Funding Change, is facing allegations of financial misconduct and breaches of trust. The company claims that Tenszen misused his authority over company finances, making unauthorized payments to himself and using trust funds meant for charity raffle proceeds to cover operational expenses[1][2].
According to the lawsuit filed in Manitoba’s Court of King’s Bench, Tenszen's actions resulted in Funding Change failing to pay charities their raffle proceeds in a timely manner or at all[1]. Additionally, Tenszen is accused of using company funds to pay personal expenses and failing to pay liabilities owed to the Canada Revenue Agency[2].
Legal implications and status:
- Tenszen's signing authority was revoked, and he was removed as a director of Funding Change, subsequently resigning as CEO and president[2].
- The Liquor, Gaming and Cannabis Authority of Manitoba (LGCA) investigated Funding Change from July to November 2024, finding inaccurate and untimely payments of trust funds during Tenszen’s control[2].
- Funding Change's licence with LGCA was renewed but with special conditions prohibiting Tenszen from financial decision-making or business management responsibilities[2].
- No criminal investigation or police report is currently ongoing related to these allegations[1][2].
- No defense statement has been filed in court, and the allegations remain unproven legally as of now[1].
In an effort to ensure no partner is negatively affected, Funding Change has refinanced its business and resolved outstanding matters with the CRA and other creditors[3]. The company's chair, David Asper, stated that Funding Change is "stronger than ever" following changes to leadership and finances[3].
Since the allegations came to light, Funding Change has disclosed significant financial and other improprieties to the LGCA, leading to emergency financing to maintain its obligations to charities and the liquidity of its operations[3]. The LGCA conducted an investigation into Funding Change from July 2024 to November 2024, concluding that the company made "inaccurate and untimely payments of the trust funds" during the period in which the finances and operations were controlled by Tenszen[2].
As the case unfolds in Manitoba's court system, it remains to be seen whether Tenszen will provide a defense statement and whether the allegations will be proven in court[1]. In the meantime, Funding Change continues to operate, focusing on its mission to support charities and community organizations.
[1] CBC News. (2024). Funding Change sues former CEO Nicholas Tenszen for alleged financial misconduct. Retrieved from https://www.cbc.ca/news/canada/manitoba/funding-change-sues-nicholas-tenszen-1.6645002
[2] Winnipeg Free Press. (2024). Funding Change renews licence with LGCA, but with conditions prohibiting Tenszen from financial decisions or management. Retrieved from https://www.winnipegfreepress.com/local/funding-change-renews-licence-with-lgca-but-with-conditions-prohibiting-tenszen-from-financial-decisions-or-management-582569961.html
[3] Funding Change. (2024). Statement from Funding Change. Retrieved from https://www.fundingchange.com/statement-from-funding-change/
The financial misconduct allegations against Nicholas Tenszen have raised concerns about the health of Funding Change, both in terms of its finances and its reputation for charity work. Despite the ongoing legal proceedings, the company is striving to rebuild its business and maintain its commitment to supporting sports and health-focused charities.
