The (OSC) is that Toronto’s , which was co-founded by YouTuber Logan Paul and the digital buying and selling of fractional ownership stakes in trading cards and other collectibles, is a “multi-layered fraud.” In its for an enforcement proceeding, the OSC claimed Liquid MarketPlace’s top executives, including Ryan Bahadori, Amin Nikdel, and Dennis Domazet, illegally diverted millions worth of investor funds for their “personal enrichment,” lied to OSC staff when questioned about their income, and violated Ontario securities law. Paul was not named in the proceeding.
The OSC alleges that the group “misappropriated” approximately $3 million of the more than Liquid MarketPlace raised from investors. Per the OSC, this money was distributed via “hidden payments to shell corporations” linked to the trio “without any legitimate business purpose” and interest-free personal loans that were never repaid. On June 21, the OSC’s Capital Markets Tribunal that it would hold a hearing next month regarding these allegations.
The OSC lists seven alleged breaches of Ontario securities law and instances of conduct contrary to the public interest on the part of Liquid MarketPlace and its operators. In addition to other penalties, the OSC is recommending fines of up to $1 million per violation and the surrender of any gains obtained through the alleged fraud. According to the OSC, Bahadori (co-founder and CEO), Nikdel (co-founder, COO, and CTO), and Dennis Domazet (former .
