An Investment Industry Regulatory Organization of Canada hearing found that a Red Deer investment adviser misappropriated funds from 16 of his clients’ accounts.
On Monday, IIROC announced that Marc St. Pierre faces the following penalty following a hearing held on November 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 the amount of $100,000.
Written reasons for the panel’s decision will be provided at a later date, IIROC said.
IIROC formally initiated the investigation into St. Pierre’s conduct in September 2021. According to IIROC, the conduct occurred between April 2015 and August 2021, while he was a Registered Representative at the Red branch. Deer of ATB Securities Inc., which is an IIROC. -regulated company.
A previous statement of allegations from IIROC stated that St. Pierre transferred $4,840,000 of the money to external bank accounts he personally owned or controlled for his own personal benefit and transferred $5,595,000 to the customer accounts to cover misappropriation of other customer accounts.
The embezzlement would have fluctuated between $80,000 and $3.8 million per customer. ATB reimbursed customers in full, plus opportunity costs attributable to lost market gains.
ATB terminated St. Pierre’s employment in August 2021 following an internal investigation and he has not been employed by an IIROC-regulated firm since.
IIROC alleged that on July 7, St. Pierre admitted under oath to embezzling approximately $4 million from clients during the six-year period and transferring the money to personal bank accounts he holds or control in other Canadian financial institutions for his personal use.
IIROC is the pan-Canadian self-regulatory organization that oversees all investment dealers and their trading activities in the Canadian debt and equity markets.
The organization investigates possible misconduct by its member firms and/or registrants. It may initiate disciplinary proceedings which may result in sanctions such as fines, suspensions, permanent bans, expulsion from membership or termination of individual and corporate rights and privileges.
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