Official’s conduct was ‘malicious, deliberate, in bad faith, for improper purposes, and was in wanton disregard of (company)’s rights’
A Manitoba fundraising technology company has filed a lawsuit against its former chief executive officer and co-founder, alleging he misused funds held in trust for charities and other organisations.
Funding Change alleges that from August 2022 to July 2024, Nicholas Tenszen used his authority over the company’s finances to process unauthorised payments to himself without the knowledge or consent of the board of directors, reported CTV News. Tenszen served as CEO and president from June 2021 until July 2024.
The lawsuit further claims that Tenszen used trust funds—intended for charity raffle proceeds—to pay operational expenses, breaching both company policy and the terms of Funding Change’s licence with the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA).
This resulted in “Funding Change being unable to pay charities raffle proceeds in a timely manner, or at all,” according to the lawsuit filed in Manitoba’s Court of King’s Bench, as cited by CTV News.
No criminal investigation is ongoing and no report has been received regarding the incident, the report noted, citing a Winnipeg Police Service spokesperson.
Investigation into 'improprieties'
After Funding Change discovered “significant financial and other improprieties,” it disclosed the findings to the LGCA.
The LGCA conducted an investigation from July to November 2024, concluding that Funding Change made “inaccurate and untimely payments of the trust funds” during the period when Tenszen controlled the finances and operations.
Tenszen was subsequently removed as a director and later resigned as CEO and president.
The company’s licence was renewed but now includes special conditions prohibiting Tenszen from any financial or operational role.
Previously, the Court of King’s Bench of Alberta dealt with a wrongful dismissal case involving whether an employee’s interactions with a third-party vendor constituted a policy breach serious enough to warrant immediate termination.
Alleged 'malicious, improper purposes' by CEO
The lawsuit against Tenszen describes his conduct as “malicious, deliberate, in bad faith, for improper purposes, and was in wanton disregard of (Funding Change)’s rights,” and states that it “ought to offend the community’s sense of fair play.” Tenszen could not be reached for comment.
“We moved quickly to refinance the business so that no partner would be negatively affected, and we immediately resolved outstanding matters with the CRA and other creditors,” Asper said, according to the CTV News report. He added that Funding Change has engaged an accounting firm to conduct an independent audit, and that Jamie Gowryluk has been appointed as the new president and chief operating officer.
Funding Change, which specialises in online raffles for non-profits, reports having completed over 2,300 raffles with total sales exceeding $19 million. No statement of defence has been filed and the allegations against Tenszen have not been proven in court.
Previously, a former dean was found guilty of misappropriating institutional funds and ordered to repay nearly $700,000 in a case that has raised serious questions about oversight and financial governance in academic institutions.
