OSC v. Mughal Asset Management Corporation and others (ponzi schemes, 2022)

Judgment entered

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In June 2022 Ontario Securities Commission staff alleged that Usman Asif used Mughal Asset Management and Lendle Corporation to run a Ponzi scheme that also funded his lifestyle. The tribunal's June 2024 order imposed permanent bans, an $800,000 joint penalty, a further $350,000 on Asif and disgorgement of $661,077 plus US$245,000, and $70,000 for the Lendle fraud.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

—

Total relief

—

Alleged gain

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Penalty as published

C$800k

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars. This regulator states penalties in CAD. The figure is recorded as published and is not converted, so it does not appear in the USD totals or medians used elsewhere on this site.

What is alleged to have happened

The statement of allegations said Mughal presented itself as a Toronto investment manager with client agreements and monthly statements, and that Asif used it and Lendle, formed in 2019, to operate a Ponzi scheme in which new investors' money paid returns to earlier ones and funded residential property purchases.

After a merits decision in 2023, the sanctions order of June 3, 2024 bans the respondents from trading and from acting as registrants or promoters permanently, orders Mughal, Lendle and Asif jointly to pay an $800,000 administrative penalty and to disgorge $661,077 and US$245,000 for the Mughal fraud, orders Lendle and Asif to disgorge $70,000 for the Lendle fraud, orders Asif to pay a further $350,000 penalty and bars him as a director or officer, and awards costs of $295,413.65. The earlier summary said no monetary figure had been extracted.

This library tags the matter as ponzi schemes because the tribunal or the court it relies on describes money from later investors being used to pay earlier ones. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Ponzi schemes — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-06-14 Statement of Allegations
2. 2022-06-16 Notice of Hearing
3. 2022-07-21 Reasons and Decision
4. 2022-10-21 Other
5. 2022-10-28 Reasons and Decision
6. 2022-11-18 Reasons and Decision
7. 2022-12-14 Reasons and Decision
8. 2022-12-14 Statement of Allegations
9. 2023-01-17 Reasons and Decision
10. 2023-04-26 Reasons and Decision
11. 2023-11-02 Reasons and Decision
12. 2023-11-02 Reasons and Decision

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• Tribunal proceeding
• Statement of Allegations
• Notice of Hearing
• Reasons and Decision
• Other
• Reasons and Decision
• Reasons and Decision
• Reasons and Decision
• Statement of Allegations
• Reasons and Decision
• Reasons and Decision
• Reasons and Decision

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.