A disciplinary hearing is in the works for a former representative of ATB Securities Inc. in Red Deer who is accused of misappropriating $10.4 million from 16 clients, many of whom were older than 75 and vulnerable.
A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) will meet Nov. 8 to set a date for a disciplinary hearing for Marc Leon St. Pierre.
According to a statement of allegations from the IIROC, St. Pierre allegedly transferred $4,840,000 of the money to outside bank accounts he personally owned or controlled for his own personal benefit. He also transferred $5,595,000 to clients’ accounts to cover up misappropriations from other clients’ accounts.
Misappropriation allegedly occurred between April 2015 and August 2021, and ranged between $3.8 million to $80,000 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 initiated its investigation in September 2021.
St. Pierre allegedly deceived clients and his employer by using fake email addresses, changing accounts, falsifying account statements, altering account statements, using fake mailing addresses, changing electronic funds transfer instructions and diverting tax slips.
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.