Turks & Caicos company used powers of attorney used to provide investment advisory services
An Ontario Securities Commission (OSC) hearing panel has ruled that a self-described “boulevardier” was actually violating securities laws by engaging in unregistered advising through powers of attorney he held over numerous brokerage accounts.
The OSC issued a decision Friday, ruling that Alexander Christ Doulis, and a company based in the Turks & Caicos, Liberty Consulting Ltd., engaged in unregistered advising and misled OSC staff investigating his activities. Doulis, who represented himself at the hearing, denied both allegations.
According to the decision, OSC staff alleged that Doulis used the powers of attorney he had over the brokerage accounts of 12 clients, both individuals and corporations, at Desjardins Securities Inc. to provide investment advisory services. The POAs gave Doulis — who had been registered with the OSC in various capacities between 1979 and 1989, and did hold a CFA charter (although he hadn’t paid his dues since 1990) — complete discretionary trading authority over the accounts; and, they alleged that he invoiced the clients for his services through Liberty.
In denying the allegations, the decision indicates that Doulis argued that there is “no evidence whatsoever of any sort that [he] advised anyone anywhere to buy a security”. It says he also argued that that there is no connection between the benefits that he received from Liberty and the function that he was providing for the clients. “Doulis maintains that both the office space that he was provided at the Liberty office and the retainer he received from Liberty were not connected to his functions with the clients,” it says.
The decision details an exchange between OSC staff and Doulis during a compelled examination where he describes himself as a “boulevardier”, and indicating that he “live[s] off of the generosity of my friends and family”; before conceding that he is also paid by Liberty.
Ultimately, the panel concluded that between January 2004 and September 2010, Doulis and Liberty “engaged in the business of advising” without being registered; and that, between July 2009 and September 2010, Doulis made misleading statements to OSC staff. As a result, it found that Doulis and Liberty acted contrary to the public interest.
The commission issued an order setting October 7 as the date for a hearing to determine sanctions and costs in the case.