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On October 3, 2012, the British Columbia Securities Commission found that Paul Stiles' craigslist postings for investments with Velocity Entertainment Inc. ("Velocity") were contrary to section 50(1)(d) of the BC Securities Act, which prohibits a person intending to effect a trade in a security from making a statement that the person knows or ought to know is a misrepresentation.

The Vancouver Provincial Court also ordered Mr. Dhanani to pay a total of $194,568 in restitution to five victims.