A Winnipeg-based business that helps nonprofits fundraise with online raffles has filed a lawsuit against its co-founder, alleging he misused funds being held in trust for charities and other organizations. Nicholas Tenszen, who served as the CEO and president of Funding Change from June 1, 2021, to July 8, 2024, is facing legal action for an unspecified amount, including punitive damages, according to a statement of claim filed in Manitoba’s Court of King’s Bench earlier this month. The lawsuit alleges that Tenszen, “who had complete access and control over Funding Change’s finances and operations, including control over the trust funds and payroll,” processed payments directly to himself without the knowledge or consent of its board of directors from August 2022 to July 2024. The court filing says Tenszen used the trust funds to pay operational expenses of Funding Change, breaching the company’s trust obligations and the terms and conditions of its licence issued by the Liquor, Gaming and Cannabis Authority of Manitoba (LGCA). This resulted in “Funding Change being unable to pay charities raffle proceeds in a timely matter, or at all,” according to the lawsuit. The lawsuit claims that Tenszen also used funds belonging to Funding Change to pay for personal expenses and failed to pay company liabilities to the Canada Revenue Agency. A Winnipeg Police Service spokesperson said that no criminal investigation is ongoing and that no report has been received regarding the incident. The lawsuit says that after Funding Change discovered “significant financial and other improprieties,” it disclosed the findings to the LGCA which prompted “emergency financing in order to maintain the integrity of its obligations to charities and liquidity of its operations.” The company also revoked Tenszen’s signing authority and he was removed as a director of Funding Change, according to the lawsuit. The court filing says he later resigned as its CEO and president. The lawsuit says 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. Funding Change’s licence with LGCA was ultimately renewed, though it included “special terms and conditions, including that (Tenszen) could not be responsible for financial decisions or for the management or operation of Funding Change’s business,” per the statement of claim. “(Tenszen’s) foregoing conduct was malicious, deliberate, in bad faith, for improper purposes, and was in wanton disregard of (Funding Change)’s rights and ought to offend the community’s sense of fair play,” says the lawsuit. Tenszen could not be reached for comment. Funding Change’s website said it has completed over 2,300 raffles with a wide range of organizations—such as sports teams, schools, parent councils, festivals and health foundations—with total raffle sales over $19 million. ‘Funding Change is stronger than ever’: chair In a statement obtained through the company’s lawyer, Funding Change chair David Asper said the company is “stronger than ever” following changes to its leadership and finances. “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,” said Asper. Asper said Funding Change has also engaged with an accounting firm to complete a thorough and independent audit. Jamie Gowryluk has been appointed as the company’s new president and chief operating officer. No statement of defence has been filed and the allegations have not been proven in court.
