On December 10, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada reviewed findings against Rajiv Puri.
It found that Puri’s been registered as a broker in the U.S. without disclosing those registrations to his member firm, and that he has opened accounts for clients without conducting adequate due diligence.
Specifically, the panel says Puri committed the following violations of IIROC’s rules:
(a) From September 2008 to January 2012, while an IIROC registrant, Puri was registered in the U.S. with three Financial Industry Regulatory Authority member firms, without disclosing those registrations to his IIROC member firm, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1; and
(b) On or about February to July 2011, Puri opened accounts for six clients in connection with the purchase of MobileBits Holdings Corp., an OTC Bulletin Board stock, without conducting adequate due diligence into the opening of the accounts, contrary to IIROC Dealer Member Rules 29.1 and/or 1300.1(a).
The hearing panel has imposed the following penalties on Puri:
(a) A six-month suspension from registration, commencing December 10, 2013;
(b) A fine in the amount of $18,000 with respect to Count 1;
(c) A fine in the amount of $18,000 with respect to Count 2;
(d) The fines totaling $36,000 shall be payable in equal monthly installments over a period of 12 months, commencing at the end of the period of suspension, namely June 11, 2014;
(e) A requirement to re-write and pass the IIROC Conduct and Practices Handbook Examination as a condition of being re-registered by IIROC; and
(f) Strict supervision for 12 months upon any re-registration with IIROC.
Puri is also required to pay costs in the amount of $10,000.
IIROC formally initiated the investigation into Puri’s conduct in November 2011. The violations occurred while he was a registered representative with PWM Capital, an IIROC-regulated firm. Puri is no longer a registrant with an IIROC-regulated firm.