MONTREAL, Sept. 7 /CNW/ - A Hearing Panel appointed pursuant to IDA
By-law 20 has found Johanne Pinet, at all material times an Approved Person at
the Laval branch of National Bank Financial Inc., an IDA Member firm, guilty
of misappropriation of funds, contrary to By-law 29.1.
In a written decision dated July 6, 2007, the Hearing Panel ruled that,
between October 18, 2005, and November 18, 2005, Ms. Pinet had engaged in
conduct unbecoming and detrimental to the public interest, contrary to By-law
29.1, when she misappropriated funds from her half-brother, a client of
National Bank Financial Inc., in the amount of $1,120, via eight withdrawals.
In determining penalty, the Hearing Panel took into account the evidence
that Ms. Pinet never had any intention of not returning the money, which she
used to pay outstanding personal debts, as she eventually deposited the money
into the half-brother's account before anyone asked her to. Also, Ms. Pinet
has no disciplinary history and cooperated fully with the investigator, to
whom she admitted all of the facts. The Hearing Panel also took into
consideration the fact that Ms. Pinet lost her job as a result of this
violation, which led to the loss of her house. Considering that her income was
minimal, imposing a hefty fine on her would be equivalent to imposing a
permanent bar from approval.
However, the Hearing Panel observed that the misconduct was in fact
serious and that the simple fact of wilfully transferring a sum - no matter
how small - from the account of a third party to one's own account, without
that person's consent, constitutes a misappropriation of funds.
For her misconduct, Ms. Pinet has been suspended from approval for a
period of one year from the effective date of the decision and must pay $4,000
in costs within 24 months.
Ms. Pinet has not been registered with an IDA Member firm since December
For a complete summary of facts, please see IDA Bulletin 3667 at
www.ida.ca or www.accovam.ca.
The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
For further information:
For further information: Claudyne Bienvenu, Regional Director,
Regulation, (514) 392-3435 or firstname.lastname@example.org; Jeffrey Kehoe, Director,
Enforcement Litigation, (416) 943-6996 or email@example.com