Enforcement Notice - Hearing - Investment Advisor uses clients' money for personal use

IIROC Holds Disciplinary Hearing for Former Thunder Bay Advisor Vance Virgil Hoshizaki

TORONTO, June 20, 2017 /CNW/ - A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Vance Virgil Hoshizaki.

The hearing concerns allegations that Mr. Hoshizaki engaged in undisclosed outside business activities and personal financial dealings with clients and conduct that was detrimental to the public interest.

Mr. Hoshizaki collected a total of approximately $536,000 from multiple clients to invest in private businesses. The investments were not recorded on the books of Mr. Hoshizaki's Dealer Member firm. He has neither returned nor accounted for the money that was entrusted to him by clients.

The hearing is open to the public, unless the panel orders otherwise. The decision of the Hearing Panel will be made available at www.iiroc.ca

Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

Hearing Date:

July 18 - 19, 2017 at 10:00 a.m.



Location:        

IIROC - BC Room


121 King Street West, Suite 2000


Toronto, ON

 

Specifically, the allegations are that:

(a)        

Between 2002 and 2013, Mr. Hoshizaki engaged in undisclosed outside business activity without the consent of his firm, contrary to IIROC Dealer Member Rule 29.1, by raising capital for a private company that was planning to run an automotive service business.



(b)        

Between 2002 and 2013, Mr. Hoshizaki engaged in personal financial dealings with clients without the consent of his firm, contrary to IIROC Dealer Member Rule 29.1, by having clients deposit funds to a private company that he controlled for the purpose of being invested in another company that was planning to run an automotive service business.



(c)        

Between March 2012 and July 2013, Mr. Hoshizaki engaged in undisclosed outside business activity without the consent of his firm contrary, to IIROC Dealer Member Rule 29.1, by running a personal online securities trading business.



(d)        

In March 2012 and March 2013, Mr. Hoshizaki engaged in personal financial dealings with clients, contrary to IIROC Dealer Member Rule 29.1, by arranging to have clients deposit funds to a private company that he controlled for the purpose of being used for his personal online securities trading business.



(e)        

Between March 2012 and June 27, 2013, Mr. Hoshizaki engaged in conduct that was unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1, by taking money that was entrusted to him by clients for investment purposes and using it for his personal use.

 

IIROC formally initiated the investigation into Mr. Hoshizaki's conduct in August 2013. The alleged violations occurred while he was a Registered Representative with the Thunder Bay branch of Assante Capital Management Ltd, an IIROC-regulated firm. Mr. Hoshizaki is no longer a registrant with an IIROC-regulated firm.

The Notice of Hearing and Statement of Allegations which sets out the allegations is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=BB4FD8BF01614F6CB3A997CF83E2CB8B&Language=en

*  *  *

IIROC is the national self-regulatory organization which oversees all investment dealers and their trading activity in Canada's debt and equity markets. IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while supporting healthy Canadian 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 debt and equity marketplaces.

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, permanent bars, expulsion from membership, or termination of rights and privileges 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.



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



For further information: Enforcement Contact: Elsa Renzella, Vice-President, Enforcement, 416 943-5877, erenzella@iiroc.ca; Media Contact: Paul Howard, Director, Communications & Public Affairs, 416 646-7279, phoward@iiroc.ca

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