BY BETHANY LINDSAY
Ayaz Dhanani, shown here in a Facebook photo, is in court this week to face criminal charges of fraud and theft, and is also facing fraud allegations from the B.C. Securities Commission. Dhanani says he is not guilty and the cases against him are without merit.
Ayaz Dhanani, shown here in a Facebook photo, is in court this week to face criminal charges of fraud and theft, and is also facing fraud allegations from the B.C. Securities Commission. Dhanani says he is not guilty and the cases against him are without merit. PHOTO BY FACEBOOK PHOTO
A Vancouver man who defrauded investors with promises of lucrative returns from imaginary companies has been permanently banned from B.C.’s capital markets and fined $225,000.
Ayaz Dhanani bilked three people out of $188,800 in a scheme involving stocks in gold-mining and oil companies. None of the firms or stocks were real, and the B.C. Securities Commission ordered Dhanani last week to pay back the ill-gotten funds, end all involvement in the securities market, and pay a hefty administrative penalty.
“The respondent’s misconduct is an egregious form of fraud,” the BCSC panel wrote in its decision. “It was all a sham. There is no evidence that there ever were any real investments contemplated by the respondent. The respondent simply pocketed the funds obtained from the investors and used them for the personal expenses of himself and his family.”
The gravity of the scam was particularly intense because of the lies Dhanani told, including the use of aliases, according to the decision. The fraudster is known to use at least six aliases.
One victim told a BCSC hearing that he was just 21 when he lost $55,000 in the scam, money he had saved from summer jobs and birthday gifts. Another said he was “in a desperate state” when he handed over $120,000.
Money from two of the investors ended up in a bank account belonging to Dhanani’s father. So far, none of the victims have been paid back, and despite a freeze order on one account, it’s not clear when or if Dhanani will have enough money to reimburse them.
Dhanani also has a history of criminal convictions for fraud. He is currently in jail facing numerous charges including theft, assault, kidnapping, identity theft and fraud.