IIROC levies $300,000 sanction on advisor

June 17, 2011 | Last updated on June 17, 2011
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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 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 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. Schoer “preyed on gullible and vulnerable people who trusted him.”

The violations occurred between 2002 and 2007, while 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 Schoer’s conduct in January 2008. Schoer is no longer registered with an IIROC-regulated firm.