News Release

Vancouver – A British Columbia Securities Commission (BCSC) panel has fined and permanently banned Hussain Dhala from the province’s capital markets for fraud and lying to a commission investigator.

Dhala, a self-employed day trader, told four investors that he had an investment opportunity and could purchase shares for them in a private placement offered by an exchange issuer. At Dhala’s instruction, the investors gave him $38,250 to purchase the shares. The panel found that the shares were never purchased, and that Dhala perpetrated a fraud on the four investors and spent $26,900 of investor funds on personal expenses.

The panel also found that Dhala lied to BCSC staff during an interview while under oath. During the interview, Dhala stated that he dealt with only one investor, which was not true. Dhala had received the $38,250 from the four investors prior to the date of the interview.

Discussing the harm to investors, the panel wrote:

“Clearly Dhala’s misconduct has resulted in financial harm to investors. We have found that the four investors gave Dhala a total of $38,250 and $26,900 has been lost by the investors. We heard testimony from three of the investors that their financial losses were significant given their financial circumstances at the time. In addition, the victims were unsophisticated investors who all stated that this experience has negatively affected their perspective on future investing.”

The panel ordered that Dhala pay to the BCSC the $26,900 obtained as a result of his misconduct, as well as an administrative penalty of $125,000. The panel also ordered that Dhala resign any position he holds as a director or officer of any issuer or registrant, and he is permanently prohibited from becoming or acting as a director or officer of any issuer or registrant, trading or purchasing securities or exchange contracts (with limited exceptions), acting as a registrant or promoter, engaging in investor relations activities, and acting in a management or consultative capacity in connection with the securities market.

You may view the sanctions decision on our website (www.bcsc.bc.ca) by typing Hussain Dhala, or 2015 BCSECCOM 336 in the search box. Information regarding disciplinary proceedings can be found in the Enforcement section of the BCSC website.

Please visit the Canadian Securities Administrators’ Disciplined Persons List for information relating to persons disciplined by provincial securities regulators, the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association (MFDA).

About the British Columbia Securities Commission (www.bcsc.bc.ca)

The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act. Our mission is to protect and promote the public interest by fostering:

• A securities market that is fair and warrants public confidence
• A dynamic and competitive securities industry that provides investment opportunities and access to capital

Media Contact:
Richard Gilhooley, Media Relations
604-899-6713

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)

Learn how to protect yourself and become a more informed investor at www.investright.org