Missing NB rep fined $1 million, barred

By Staff | June 18, 2012 | Last updated on June 18, 2012
2 min read

On March 30, 2011, an IIROC hearing panel found Darlene Catherine Ryan liable for the misappropriation of funds from five of her clients.

The panel found she committed the following violations:

(a) Between March 2005 and July 2010, she misappropriated, on 31 separate occasions, approximately $1.5 million from five clients, contrary to IIROC Dealer Member Rule 29.1 (IDA By-law 29.1 prior to June 1, 2008).

According to IIROC, Ryan engaged in manipulative and fraudulent conduct, and siphoned off the funds of several elderly clients. She also often forged the clients’ signatures on Letters of Authorization, which allowed her to transfer the funds out of the client accounts, IIROC says.

More than $970,000 went missing as a result of her actions. IIROC notes that Ryan’s whereabouts are currently unknown. She didn’t attend the disciplinary hearing, but the facts of the case were proven.

“[Ryan] took advantage of her clients who trusted her and relied on her for their financial well-being,” IIROC says. “[Ryan’s] conduct offends the foundation of trust upon which the securities industry relies, caused harm and great anxiety to her clients, and compromised the reputation and integrity of her Dealer Member firm.”

The Hearing Panel imposed the following penalty on Ms. Ryan:

(a) a permanent bar on the Ms. Ryan’s approval with IIROC; and

(b) a fine in the amount of $1,000,000.

IIROC formally initiated the investigation into Ryan’s conduct in October 2010. The alleged violations occurred when she was a registered rep with the Moncton, NB branch of Scotia Capital, an IIROC-regulated firm. She’s no longer a registrant with an IIROC-regulated firm.

Read the decision reasons.

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.