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
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
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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
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