The British Columbia Securities Commission has issued a notice saying it will examine allegations that a North Vancouver day trader bilked four investors out of over $38,000 - then lied to commission investigators about it.
The securities commission alleges Hussain Dhala convinced four people to put $38,250 into a private investment scheme.
But according to the commission, the shares in question were never bought.
Instead, the securities commission alleges Dhala defrauded the investors by taking over $33,000 for himself through cash withdrawals and email transfers.
The commission also alleges Dhala spent $6,500 of his ill-gotten gains on personal expenses including limousine services, gas, hair salon visits, restaurants, groceries, credit card payments, as well as life insurance and MSP payments.
Investors later became concerned that Dhala hadn't actually bought the shares and proceeded to ask him to return the money.
But instead, he allegedly promised one person he would use that money to trade in foreign exchange - but didn't.
Dhala told a second investor he would return the money when his bank account was unfrozen by the securities commission - even though his bank account had never been frozen.
A cheque to repay a third investor allegedly bounced.
The B.C. Securities Commission also alleges that Dhala lied to commission staff under oath by telling them he had only dealt with one investor.
The securities commission will set a date for a hearing July 22.
Dhala could not be reached for comment before press time.
