According to CIRO’s decision, between March 2017 and May 2023, Smith processed 236 mutual fund redemptions and 200 cash withdrawals from client BR’s accounts.
He directed the proceeds to his personal bank account by falsely portraying it as belonging to the client.
The panel found that Smith misappropriated a total of $460,126.47 and deposited an additional $26,500 from blank cheques BR had signed for investment purposes.
BR was unaware of these transactions and suffered tax consequences of $41,578.50 and deferred sales charges of $1,678.20.
On March 17, 2022, Smith submitted forms changing the designated beneficiaries on BR’s two registered accounts from BR’s cousin to three individuals who were not at arm’s length from Smith.