Regulator seeks ban of former fund rep convicted of fraud

Securities regulators are seeking to ban a former mutual fund rep who was convicted of fraud last year involving former clients.

The Ontario Securities Commission (OSC) issued a notice of hearing on Tuesday seeking a permanent ban from the industry against Alain Armand Theroux after he pleaded guilty to five counts of fraud over $5,000 in the Ontario Court of Justice last April.

Theroux was convicted and sentenced to 12 months in prison and two years’ probation. He was also ordered to pay restitution and was fined $75,000.

Now, the OSC is seeking a permanent ban against him based on the fact that his convictions involved securities-related offences.

According to the OSC’s allegations, which have not been proven, Theroux, who was registered as a mutual fund rep between 1992 and 2008, raised more than $1 million from various investors, including several of his former mutual fund clients, ostensibly to invest in a biofuel company.

However, the regulator says he misappropriated about $170,800, which was used for his own purposes, including payments to other investors.

OSC staff are proceeding with the case as a written hearing. According to the OSC’s notice, Theroux now has 21 days to file a request for an oral hearing, and 28 days to file written submissions.

Staff

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