TORONTO, June 17, 2011 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) has found that Roger
Carl Schoer fraudulently induced clients and other individuals to
invest money which he used for other purposes. In its decision, the panel imposed a penalty on Mr. Schoer which includes:
A $200,000 fine;
A permanent bar from registration with an IIROC-regulated firm; and
$100,000 in costs.
Specifically, the panel found that Mr. Schoer engaged in conduct
unbecoming and detrimental to the public interest, contrary to IIROC Rule 29.1, by fraudulently inducing clients and other individuals to put money
into investments that he was misrepresenting as private placement
investments in small corporate entities. He then used the funds to pay
off other clients and individuals, or to pay unrelated personal debts.
"In a Ponzi-like fashion, cheques were induced from new clients to pay
off pending obligations to other existing clients …," the panel stated
in its decision. Mr. Schoer "preyed on gullible and vulnerable people
who trusted him."
The violations occurred between 2002 and 2007, while Mr. Schoer was a
Registered Representative with the Toronto offices of Octagon Capital
Corp. and Standard Securities Capital Corp., both IIROC-regulated
firms. IIROC formally began the investigation into Mr. Schoer's conduct
in January 2008. Mr. Schoer is no longer registered with an
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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