TORONTO, Feb. 7 /CNW/ - A Hearing Panel of the Investment Industry
Regulatory Organization of Canada (IIROC) has accepted a Settlement
Agreement, with sanctions, between IIROC staff and Gregory Rao.
In this agreement, Mr. Rao admits to misappropriating funds from two clients for a total
of $195,000. As a penalty, Mr. Rao has agreed to a $270,000 fine and
$15,000 in costs. He has also agreed to a permanent ban on registration
with an IIROC-regulated firm.
Specifically, Mr. Rao admits to engaging in conduct unbecoming or
detrimental to the public interest, contrary to IIROC Rule 29.1 by:
Depositing $60,000 in client funds into his personal bank account;
Cashing a $35,000 cheque from the same client's account and taking the
funds for his own use; and
Causing a bank draft for $100,000 to be issued from another client's
account funds and depositing the funds in his personal bank account.
The three transactions in client funds were made without the clients'
knowledge or consent.
The violations occurred from or about May to November 2008, while Mr.
Rao was a Registered Representative with the Woodbridge, ON branch of
BMO Nesbitt Burns, an IIROC-regulated firm. IIROC began its formal
investigation into Mr. Rao's conduct in September 2009. He is no longer
registered 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:
Vice President, Enforcement