Securities regulators in British Columbia allege that a self-employed day trader defrauded four prospective investors of a purported exempt market investment, and then lied to regulators when they questioned him about it.
The B.C. Securities Commission (BCSC) issued a notice of hearing Tuesday alleging that Hussain Dhala defauded four investors when he invited them to take part in a private placement with an unnamed issuer. The BCSC says that the investors gave him almost $40,000 to purchase the shares, but that he never did.
Instead, the BCSC alleges that Dhala diverted at least $33,400 for himself, taking $26,900 in cash withdrawals and email money transfers, and using $6,500 to pay personal expenses, including limousine services, gas, haircuts, restaurants, groceries, and life insurance payments. It also says that he lied to commission staff during an interview while under oath.
The allegations have not been proven.
The commission’s executive director will apply to set dates for a hearing into the allegations before a panel of commissioners on July 22.