A major fraud trial in Chatham may be in jeopardy because the defence plans to file an application to stay charges due to unreasonable delays in getting a timely trial.
The defence lawyers for Justin Foss and Michael Dziedzic told the Chatham court on Tuesday that they were working on a delay motion for "pre and post-charge delay", asserting their clients' right to be tried on fraud charges within a reasonable time was violated.
The delay motion could lead to the case being dismissed. The four-week fraud trial is scheduled for August, October, and November.
Under Canadian law, a provincial court trial must begin within 18 months of charges being filed. Otherwise, the prosecution must prove exceptional circumstances to justify the delay. The defence's delay motion must include evidence to convince the judge that the delay was not their fault.
Former Banknote Capital directors Michael Dziedzic and Justin Foss, who worked at the Chatham investment company, were charged with fraud by the Ontario Securities Commission (OSC) in April 2025, along with partner Ryan Rumble, who is also charged with one count of forging a document.
The Commission alleged that from November 2020 to August 2023, the three accused men raised more than $11 million from investors by promising high rates of return and guaranteed principal. However, the local investors alleged they were duped and did not receive a "full" return on their investment.
The OSC alleged that the funds collected from new investors were used to repay existing investors and were diverted for the personal benefit of Rumble.
