Canadian Regulator Targets Surrey Man over Alleged Gambling

This development adds to the recent streak of high-profile gambling fraud cases, demonstrating that potential investors must always perform due diligenceImage Source: Shutterstock.com

British Columbia’s securities watchdog has alleged that a Surrey entrepreneur misled investors and spent much of their money on gambling and personal spending. The case draws attention to other previous instances of gambling-related fraud, ranging from grand to mundane. They serve as a cautionary talefor investors and individuals to think twice before trusting their money to somebody else.

Investors Were Promised Easy Money

In a notice of hearing released last week, theBC Securities Commission(BCSC) accused 42-year-old D.L.P. of fraud after he raised more than $200,000from 14 investors between 2021 and 2022 through his sole proprietorship. According to BCSC, the defendant solicited investors with profit-sharing agreements, promising short-term returns.

D.L.P. allegedly told his clients the money would be used tofulfill merchandise contracts, ordering and customizing branded products for corporate clients. However, investigators claim that the defendant spent approximately $146,000 on gambling sites, personal purchases, and payments to third parties. This sum represents nearly three-quarters of the $200,460 he raised from investors.

The BCSC further alleges that D.L.P. failed to pay investorstheir promised returns, thereby committing fraud under the province’sSecurities Act. The Commission has ordered the defendant, who has yet to respond publicly, to appear for an initial hearing on November 18, 2025. If he fails to do so, a hearing will proceed in his absence. The allegations against him have not been proven.

Gambling-Related Fraud Is Becoming Increasingly Common

This latest case comes on the heels of a series of high-profile gambling-related accusations worldwide. Earlier this month, a group of Chinese investors filed a $13.4 million lawsuitin a New York court, alleging that they had been deceived into financing a casino resort project in the Northern Mariana Islands. They argue that ten years later, there is no casino, no hotel, and no repayment schedule. 

Fraud cases tied to gambling are not limited to corporate settings. In July, Alberta’s Court of King’s Benchsentenced a serial defrauder to an indeterminate prison term. At 55, the defendant was found to have spent decades conning women he met online. He would gain their trust and then convince them tolend him money. The defendant reportedly lost much of it in gambling, leaving his victims with significant financial and emotional harm.

The BCSC continues its investigationof D.L.P. If found guilty, he can face significant fines, a ban from participating in capital markets, and potentially even aprison sentence. Regulators note that such schemes often rely onurgency and familiarity, two factors that can lead victims to drop their guard, potentially causing investors and individuals to make rash decisions.