IIROC announces decision and penalty against Krista Dettelbach

TORONTO, Feb. 8 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a permanent ban against Krista Dettelbach after finding that she misappropriated funds and failed to cooperate with an IIROC investigation.

The panel's decision also ordered Ms. Dettelbach to pay a $75,000 fine and $40,000 in costs.

Specifically, the panel found that Ms. Dettelbach:

  • engaged in conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1,when she misappropriated funds by improperly changing the orders of approximately 15 clients, without any instructions from clients, so that two other client accounts would profit from the trading activity. Ms. Dettelbach had previously introduced those two particular clients to the firm. The Hearing Panel noted that it was part of her role to introduce new business and her compensation included a bonus on assets brought in, plus a percentage of the revenue generated by those assets.The panel found that through 53 improper trade tickets, the approximately 15 clients sustained losses totaling in excess of $163,000.
  • failed to co-operate with IIROC by failing to attend at an IIROC interview, contrary to IIROC Rule 19.5.

In explaining its decision, the panel stated, "We believe it is incumbent upon this Hearing Panel to communicate to the Respondent, to the public and to the investment industry as a whole that serious consequences will befall those who engage in activities similar to those of the Respondent."

The misappropriations occurred from or about February to July 2008, while Ms. Dettelbach was an Investment Representative with the Toronto branch of RBC Dominion Securities Inc., an IIROC-regulated firm.  IIROC formally began its investigation into Ms. Dettelbach's conduct in July 2008. Ms. Dettelbach failed to attend the IIROC interview in November 2009. She is no longer registered in any capacity with an IIROC-regulated firm.

* * *

IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions and permanent bans or terminations for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1.877.442.4322.

IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information:

Jeff Kehoe
Vice President, Enforcement
416.943.6996
jkehoe@iiroc.ca
    Elsa Renzella
Director, Enforcement Litigation
416.943.5877
erenzella@iiroc.ca


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