An Investment Industry Regulatory Organization of Canada hearing panel has found a Red Deer investment advisor misappropriated funds from 16 of his clients’ accounts.
On Monday, the IIROC announced Marc St. Pierre is facing the following penalty following a hearing held on Nov. 8:
— A permanent ban from registration in any capacity with IIROC;
— A fine in the amount of $1,000,000;
— Disgorgement in the amount of $4,840,000.
St. Pierre is also required to pay costs in amount of $100,000.
The panel’s written reasons for the decision will be provided at a later date, the IIROC stated.
IIROC formally initiated the investigation into St. Pierre’s conduct in September 2021. According to the IIROC, the conduct occurred between April 2015 and August 2021, while he was a registered representative with the Red Deer branch of ATB Securities Inc., which is an IIROC-regulated firm.
A previous statement of allegations from the IIROC stated St. Pierre allegedly transferred $4,840,000 of the money to outside bank accounts he personally owned or controlled for his own personal benefit and transferred $5,595,000 to clients’ accounts to cover up misappropriations from other clients’ accounts.
Misappropriation allegedly ranged between $80,000 to $3.8 million per client. ATB has reimbursed the clients in full, plus opportunity costs attributable to lost market gains.
ATB terminated St. Pierre’s employment in August 2021 as a result of an internal investigation and he has not been employed with an IIROC-regulated firm since.
IIROC alleged that on July 7, St. Pierre admitted under oath to misappropriating about $4 million from the clients over the six-year period and transferring the money to personal bank accounts owned or controlled by him at other Canadian financial institutions for his personal use.
IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activity in Canada’s debt and equity markets.
The organization investigates possible misconduct by its member firms and/or individual registrants. 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.