VANCOUVER, June 24, 2015 /CNW/ - A British Columbia Securities Commission (BCSC) panel has fined and permanently banned Noshad Dowlati from the province's capital markets for fraud and trading and advising without registration.
Dowlati operated a blog and a Twitter account that gave general investment advice about publicly listed stocks. The panel found that Dowlati committed fraud on an investor who was a follower of his investment blog when:
- he took $1,000 of the $10,000 the investor gave to him and used it for personal expenditures; and,
- he failed to inform the investor that he had lost or spent all of the original investment at the time the investor gave him an additional $5,000 to invest.
The panel also found that Dowlati engaged in activities similar to a registrant, such as earning commissions on returns and making investment decisions on the investor's behalf. As a result, Dowlati traded in securities without being registered and acted as an adviser in contravention of securities laws.
Discussing Dowlati's dishonesty, the panel wrote, "We find that Dowlati had subjective knowledge of his dishonest act. He knew about the investment losses as he carried out all of the trades and was issued monthly account statements showing trading gains and losses. He knew he had not disclosed the losses to the investor."
The panel ordered that Dowlati pay to the commission the $14,050 obtained as a result of his misconduct, as well as an administrative penalty of $30,000. The panel also ordered that Dowlati 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, 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.
The panel dismissed one additional allegation of fraud.
You may view the sanctions decision on our website (www.bcsc.bc.ca) by typing Noshad Dowlati, or 2015 BCSECCOM 255 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
Learn how to protect yourself and become a more informed investor at www.investright.org
SOURCE British Columbia Securities Commission
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