Rep banned for misappropriating funds

By Staff | May 21, 2013 | Last updated on May 21, 2013
2 min read

Following a disciplinary hearing held on April 9, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada found Shelley Blanchard transferred funds out of a client’s account without the client’s knowledge or consent.

According to IIROC’s decision document, enforcement counsel discussed a number of factors in its submissions. The document says, “The respondent was both a bank employee and a registered representative who intentionally misappropriated funds from various vulnerable clients’ brokerage and bank accounts over a lengthy period of time. None of the money misappropriated appears to have been recovered.”

However, it adds, “the respondent not only has no previous disciplinary history with IIROC, but she also fully cooperated with the investigation and admitted her misappropriation.”

In an email Blanchard sent prior to her hearing, IIROC says she stated, “I don’t plan to get counsel or dispute anything at the hearing. I understand there will be repercussions from my actions and that I will have a lifetime ban on working in the industry. I also understand that there will be a monetary fine.”

Upon its findings, the hearing panel imposed the following penalty on Blanchard:

  • A permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any IIROC member
  • Blanchard must also pay costs in the amount of $5,000

In its decision document, IIROC says, “In considering the penalties requested we have considered the protection of the investing public, the integrity of the capital markets, general deterrence, the protection of the IIROC membership and the protection of the integrity of the IIROC enforcement process. In addition, the panel took into consideration IIROC’s Dealer Member Disciplinary Guidelines and considered related decisions provided by Enforcement Counsel in IIROC’s Brief of Authorities.”

IIROC formally initiated the investigation into her conduct in June 2011. The alleged violation occurred when she was a registrant at CIBC Investor Services. Blanchard is no longer a registrant with an IIROC-regulated firm.

Read the panel’s decision. staff


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