Winnipeg-based business maintains former CEO misused funds, denies his entitlement claim

The Manitoba Law Courts building in Winnipeg on Wednesday, May 8, 2024. THE CANADIAN PRESS/John Woods

A Winnipeg-based business that helps nonprofits fundraise maintains that its former CEO and co-founder misused company funds and denies his entitlement claim to unpaid funds, according to a recent court filing.

In August, Funding Change, which operates a digital raffle platform, filed a lawsuit against Nicholas Tenszen, who served as its CEO and president from June 1, 2021, to July 8, 2024.

The business alleged he paid himself beyond amounts he was entitled to and breached the terms and conditions of a Liquor, Gaming and Cannabis Authority of Manitoba (LGCA) licence, according to a statement of claim. As a result, the business—which holds raffle proceeds in trust—was unable to pay charities in a timely manner or at all, per the suit.

Tenszen was also accused of failing to pay liabilities to the Canada Revenue Agency and failing to provide regular performance reports and annual budgets.

An investigation by the LGCA in 2024 allegedly revealed “inaccurate and untimely” payments of the trust funds and Tenszen resigned, according to the suit. The LGCA ultimately renewed the company’s licence, but forbade Tenszen from being responsible for the company’s finances, according to the statement of claim.

Tenszen later filed a statement of defence and counterclaim denying “any misappropriation, breach of duty, unjust enrichment, or misconduct,” alleging he is entitled to unpaid funds—something the company denies.

“(Tenszen) has been paid all amounts due and owing, and furthermore (Tenszen) overpaid himself,” says latest court filing from Tuesday.

“The defendants by counterclaim deny each and every allegation in the counterclaim and deny that plaintiff by counterclaim is entitled to the relief sought, or any relief at all.”

Tenszen previously claimed he was “forced” by the board chair to resign and was removed from the board—along with all other founding shareholders—in an attempt to take over the company.

He had also previously claimed that the company’s LGCA licence was fully reinstated—without conditions—after the investigation. Funding Change denies this, adding that the condition was added “because the LGCA was no longer confident that (Tenszen) met regulatory standards for integrity,” the suit says.

Tenszen declined to comment on the case.

CTV News has reached out to the LGCA for comment.

None of the claims have been tested in court.