TORONTO, Nov. 18, 2014 /CNW/ - Following a disciplinary hearing held on October 2nd, 2014, in Toronto, Ontario, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Douglas John Eley was liable of misrepresenting clients' net worth to his member firm by altering and inflating certain amounts on account documentation in order to get past the firm's suitability requirements; and falsely endorsing the signatures of several clients on account documentation and other forms.
The Hearing Panel's decision dated October 30, 2014, is available at:
Specifically, the Hearing Panel found that Mr. Eley committed the following violations:
(a) From or about August 2011 to April 2013, Mr. Eley engaged in conduct unbecoming of a registrant or detrimental to the public interest, in that he made misrepresentations to his firm's compliance staff by inflating certain clients' net worth, contrary to IIROC Dealer Member Rule 29.1; and
(b) From or about August 2011 to April 2013, Mr. Eley engaged in conduct unbecoming of a registrant or detrimental to the public interest, in that he falsely endorsed the signatures of several clients on certain client account documentation and other forms, contrary to IIROC Dealer Member Rule 29.1.
The Hearing Panel imposed the following penalties on Mr. Eley:
(a) A prohibition from re-applying for registration with IIROC for a period of six months from the date of the hearing on October 2, 2014, namely, until April 2, 2015, and thereafter until the fines and costs as set forth in this Order are paid in full;
(b) Should Mr. Eley obtain registration, he shall be subject to strict supervision for a period of one year; and
(c) Mr. Eley shall pay a fine of $50,000.
Mr. Eley is also required to pay costs in the amount of $15,000.
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.
IIROC formally initiated the investigation into Mr. Eley's conduct in May 2013. The violations occurred while he was a Registered Representative with the Burlington branch of Macquarie Private Wealth Inc. (now Richardson GMP), at the relevant time an IIROC-regulated firm. Mr. Eley is currently working in an unregistered capacity with Chippingham Financial Group, an IIROC-regulated firm.
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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.
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, [email protected]; Media Contact: Karen Archer, Senior Media and Public Affairs Specialist, 416 865-3046, [email protected]