IIROC has permanently banned a former investment advisor from Winnipeg and fined him almost half a million dollars for misappropriating funds.
Following a penalty hearing on Nov. 9, 2017, an IIROC hearing panel imposed the following penalty on Gennaro Scerbo, a former registered representative with RBC Dominion Securities:
- a $50,000 fine for failing to cooperate with an IIROC investigation;
- a $420,000 fine, including disgorgement; and
- a permanent ban from IIROC registration in any capacity.
Scerbo is also required to pay costs of $15,000.
The hearing panel found that Scerbo forged his spouse’s signature 57 times on account documents in order to misappropriate $271,000 from her investment account over four years. In addition, Scerbo failed to cooperate with an IIROC investigation.
IIROC formally initiated the investigation into Scerbo’s conduct in June 2016. The alleged violations occurred while he was a registered representative with the Winnipeg branch of RBC Dominion Securities Inc., an IIROC-regulated firm. Scerbo is no longer a registrant with an IIROC-regulated firm.