A former Red Deer investment adviser accused of misappropriating funds will go before an industry discipline panel.
Shaun Wayne Howell allegedly solicited clients to invest in securities and then misappropriated the funds received, says the Investment Industry Regulatory Organization of Canada (IIROC).
The alleged misappropriation occurred between November 2008 and February 2015 while Howell was a registered representative with the Red Deer branch of RBC Dominion Securities Inc., says IIROC.
It is alleged Howell convinced his clients, many of them long-time friends, to invest $692,000, which he put into his personal bank account for his own use. He paid out $290,000 to five clients over several years, “which he falsely represented to them was an investment return,” alleges IIROC in background documents on its website.
As well, one client was allegedly given a falsified account statement.
It is also alleged that Howell engaged in personal financial dealings with a client. Howell is accused of borrowing $50,000 from a client without his dealer member firm’s knowledge.
IIROC launched an investigation into Howell’s conduct in March 2015.
Howell, who had worked at RBC since 1999, was fired in March 2015 and no longer works with any IIROC-regulated firm.
All allegations are contrary to IIROC membership rules. A hearing has been set for Nov. 21-23 in Calgary.
IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada’s debt and equity markets.
It can bring disciplinary proceedings, which may result in penalties including: fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
The Advocate was unable to reach anyone for comment from Red Deer’s RBC Dominion Securities branch on Thursday afternoon.