A trader in Canada has received a four-year jail sentence after accepting millions of dollars from investors, then giving them false information about their returns.
The Convicted Trader
Nathanael Anthony Aikman was one of the founders of Yonge Street Capital LLC, which purported to be a hedge fund that invested in various securities and cryptocurrencies. Over a period of almost three years, Yonge Street took in more than $6.2 million from 71 investors.
The Scheme
Aikman developed a structure at the fund that he claimed would guarantee a 25 per cent return on investment. However, much of the money was used by Aikman for purposes unrelated to YSC’s business, and to the detriment of investors. His partners in the business, Syed Saad Aziz and Jazib Ali Khan, were both convicted of unregistered trading, but neither was found guilty of fraud.
The Investigation
Aikman was the only person with access to Yonge Street Capital’s brokerage account, and his other partners could monitor the fund’s performance only through a spreadsheet. In August 2019, investors were told that their accounts would be liquidated and they would receive their full balance. However, Aziz learned that he had been ‘duped’ and that Aikman had falsified the fund’s monthly returns.
The Verdict
An Ontario court handed down the penalty to Nathanael Anthony Aikman, who pleaded guilty in November to fraud and trading securities without registration. He has also been ordered to pay restitution of more than $3.9 million.
Background on Yonge Street Capital LLC
Yonge Street Capital LLC was a hedge fund that purported to invest in various securities and cryptocurrencies. The regulator said that Aikman used much of the money taken in by the fund for purposes unrelated to YSC’s business, and to the detriment of investors.
The Ontario Securities Commission (OSC) Investigation
The OSC conducted an investigation into Yonge Street Capital LLC and its founders. They found that Aikman had developed a structure at the fund that he claimed would guarantee a 25 per cent return on investment. However, this was a false promise to investors.
Timeline of Events
- August 2019: Investors were told that their accounts would be liquidated and they would receive their full balance.
- 2021: Aziz filed a complaint with York Regional Police after learning he had been ‘duped’ by Aikman.
- November 2022: Aikman pleaded guilty to fraud and trading securities without registration.
What’s Next?
Aikman has been ordered to pay restitution of more than $3.9 million. The Ontario court will now consider how the restitution is to be paid.
Background on Nathanael Anthony Aikman
Nathanael Anthony Aikman was one of the founders of Yonge Street Capital LLC. He pleaded guilty in November to fraud and trading securities without registration.
The Impact on Investors
Investors who put their trust in Yonge Street Capital LLC have been left with significant financial losses. The regulator said that much of the money taken in by the fund was used for purposes unrelated to YSC’s business, and to the detriment of investors.
Conclusion
Aikman has received a four-year jail sentence after accepting millions of dollars from investors, then giving them false information about their returns. He has also been ordered to pay restitution of more than $3.9 million.
Related Stories
- Trending: A cut in January, then a pause: What jobs data mean for Bank of Canada and interest rates
- Economy: History is foreshadowing the worst of times for markets
- Investor: How far could Trump go using ‘economic force’ to try and annex Canada?
Join the Conversation
You can join the discussion on this story by sharing your thoughts in the comments section below.