Vancouver man sentenced following BCSC investigation
A Vancouver man has been sentenced to a total of 36 months in jail following an investigation by the British Columbia Securities Commission.
Ayaz Dhanani was found guilty of selling fraudulent investments and other securities-related crimes and was sentenced at Vancouver Provincial Court last month.
"Dhanani preyed upon people's lack of knowledge about investments," said Peter Brady, the BCSC's Executive Director. "He made promises about businesses or opportunities that simply did not exist."
Dhanani pleaded guilty to four counts of fraud over $5,000, and three offences under the BC Securities Act: disobeying a British Columbia Securities Commission (BCSC) order against trading, failing to file a prospectus (a formal document that provides details of an investment) and misleading investors.
$194K restitution for victims
Along with the jail sentence, Dhanani was ordered by the Court to pay a total of $194,568 in restitution to five victims, and he will be on probation for a total of 36 months upon his release from prison. He was also ordered to provide a sample of his DNA.
Dhanani pleaded guilty in August to fraudulently soliciting a total of $153,800 in investments from three B.C. residents, and received a 23-month jail sentence for those offences in October. He also pleaded guilty in October to another fraud over $5,000 in relation to a fourth B.C. resident, and to three Securities Act offences relating to his obtaining funds for an investment from a fifth B.C. resident. This week, he received a further 13 months in jail for those offences.
Already banned
Following a previous investigation by the BCSC in 2016, Dhanani was permanently banned from trading or purchasing securities or exchange contracts; becoming or acting as a director or officer of any issuer or registrant; becoming or acting as a registrant or promoter; acting in a management or consultative capacity in connection with activities in the securities market; and engaging in investor relations activities.
On that occasion he was also ordered to pay an administrative penalty of $225,000. In 2017, the BCSC recovered $120,000 provided to Dhanani for investment, and distributed that to the three victims involved in the administrative proceeding.
