IIROC levies $5 million fine against ex-broker

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between IIROC staff and Henry Cole.

In the agreement, Cole admitted that he misappropriated client funds and misrepresented payments to investors.

In particular, Cole has admitted to the following violation:

Between February 2009 and December 2010, while a registered representative, he failed to observe high standards of ethics and conduct in the transaction of his business, and engaged in a business conduct or practice which is unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1, in that he:

(a) misappropriated client funds in the amount of approximately $5 million;

(b) created false documents; and

(c) misrepresented payments to investors out of a pool of investor funds as being returns on investment.

In the agreement, Cole also agreed to the following penalty:

(a) a fine of $5,020,022; and

(b) a permanent ban from registration with IIROC.

Mr. Cole also agreed to pay costs in the amount of $10,000.

Read the settlement agreement here.

IIROC formally initiated the investigation into Cole’s conduct in December 2010. The violation occurred when he was a registered representative in Toronto, Ontario with RBC Dominion Securities Inc., an IIROC-regulated firm. He is no longer a registrant with an IIROC-regulated firm.

Staff

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