The main player in an alleged Ponzi scheme involving $14 million of local investor’s money has been found in contempt of court for twice failing to surrender his passport, and an arrest warrant was issued.
Ryan Rumble, a director of Banknote Capital, which is facing a $5 million lawsuit, took part via a video call from the United Arab Emirates city of Dubai in a court proceeding in Chatham ON.
Superior Court Justice Paul Howard found Rumble in contempt for failing to comply with an order on Nov. 10 and an extension granted to Dec. 1 to surrender his passport. An arrest warrant was issued for Rumble.
Norman Groot, lawyer for Emily Hime, who is taking legal action against Banknote, said Rumble’s wife was examined on Wednesday and stated her husband is in Dubai “with no known date of return.”
He added Rumble’s wife shared the same story previously told by Rumble that he boarded a plane in Toronto without a credit card or cash to fly to Dubai.
Rumble, who also acknowledged he hasn’t heeded the judge’s recommendation he obtain new counsel, said he totally understands if he is found in contempt.
However, Rumble told the judge he has told Groot several times: “I want to make this right with the clients and get these clients paid back their initial investment.”
He added where he is at is the only place he is able to work to get it done.
Efforts continue to track down the investors’ money.
Among the allegations, not yet tested in court, is that Banknote kept soliciting money from new investors when it could not get back money it put into another company, which a bankruptcy trustee found had been paying out old investors with new investors’ money.
Rumble, along with two other directors, Michael Dziedzic and Justin Foss, are named in the action.
Groot, who specializes in fraud recovery litigation, previously alleged in court examinations of the three directors revealed Rumble was “essentially the operating mind of this investment club” and Dziedzic and Foss “were seemingly along for the ride.”
A Mareva injunction was issued in May that froze Banknotes assets.
On Thursday, Groot said because there has been no compliance with judge’s orders with respect to the accounting on the original Mareva injunction, he brought a “Norwich-type motion” to have Rumble’s bankers provide transaction documents “to trace the investor money that we’re seeking to have accounted for.”
Originally published by the Chatham Daily News.