VANCOUVER – The British Columbia Securities Commission is pursuing sanctions against a man who allegedly lost about $15,000 entrusted to him for investment by an unidentified follower of his financial advice posted on a blog and on Twitter.
It accuses Noshad Dowlati of trading on behalf of the investor in return for an agreed-upon commission based on trading profits, without being registered to do trades or provide advice.
The allegations against Dowlati haven’t been proven.
The BCSC alleges that the unidentified investor initially provided $10,000 for Dowlati to invest, on condition that he’d stop trading if the value of the investments fell below $8,000.
The blogger is accused of spending or losing all of the initial $10,000 plus an additional $5,000 after Dowlati allegedly promised to return the investor’s entire $15,000 within five months of receiving the second instalment.
The BCSC says the investor provided the funds in November 2011 and January 2012.
The B.C. provincial watchdog says the blogger hasn’t returned the principle and accused him of using $1,000 of the original $10,000 to pay personal expenses such as a credit card bill, retail shopping and restaurants.
The BCSC’s executive director will apply for a hearing before a panel of commissioners.