Mining investment pitch was actually fraud: regulator
Posted June 1, 2016 11:57 am.
Last Updated June 1, 2016 12:30 pm.
This article is more than 5 years old.
VANCOUVER (NEWS 1130) -The province’s securities regulator says a local man committed fraud by raising a six-figure sum from investors on phony promises about mining stock.
The BC Securities Commission says Ayaz Dhanani got $188,800 in 2013 from three investors by saying he would buy shares in companies that were about to go public and would rise 50 per cent in a short time.
A commission panel found that Dhanani never bought any stock, instead keeping the money for himself and his parents to cover overdrafts and personal expenses.
About one-third of the total came from two investors.
There is hope that the third victim will recover some money.
The BCSC says it froze a bank account containing $120,000, which Dhanani instructed the investor to put in the name of another party as a way to avoid taxes.
The commission says Dhanani already has a criminal record for fraud and theft, and previously claimed to be a mortgage broker even though he was not registered. It also says he has used several aliases.
