IIROC reaches settlement with three former All Group reps
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An extra-marital affair and the drama that followed have led to a 12-month hiatus from the securities industry for an industry representative.

Specifically, the Ontario Securities Commission (OSC) has published a settlement agreement with an unnamed man — identified only as “John Doe” in its decision — that results in him agreeing not to apply to reactivate his registration for a year, subject to certain conditions.

According to the OSCs decision approving the settlement, Doe, who was registered as an advising representative, was fired for cause from his firm; and, when he sought to reactivate his registration, OSC staff “became aware of information which could impugn John Doe’s suitability for registration.”

In particular, the decision indicates that when Doe was seeking re-registration, he attended a voluntary interview with the regulator at which he disclosed an extra-marital affair gone awry; admitted to making misstatements to supervisors at his firm and to the police about the affair; and admitted to the unauthorized disclosure of his employer’s confidential information.

After Doe ended the three-month affair, his ex-lover allegedly emailed various members of his family and co-workers, including two of his supervisors at work, according to the OSC’s decision. When questioned by his supervisors, Doe initially lied about the affair. He also initially lied to police who were investigating a complaint from his wife that the jilted lover was now harassing her.

The police inquiry led to Doe being arrested by police and charged with uttering a death threat to his ex — a charge that was subsequently withdrawn at the request of the Crown.

These events were discussed at the interview with the OSC, and the decision indicates that OSC staff informed Doe “that they were troubled by the fact that he had not been truthful with his employer or the police” regarding the affair. The OSC’s decision notes that Doe maintains that he did not utter any threat, nor did he intentionally mislead OSC staff about these events.

Separately, Doe also admitted to making unauthorized disclosure of his employer’s proprietary information, which violated the firm’s code of conduct.

Doe admits that his conduct “impugns his integrity” for registration, the OSC’s decision states. He also takes full responsibility for his conduct, is remorseful, has been through counselling to help deal with personal issues that contributed to his conduct, and pledges not to engage in misconduct in the future.

“He recognizes and acknowledges that the reactivation of his registration on the terms described in this settlement agreement represents a second chance for him to pursue a career in the capital markets, and that further misconduct by him could result in a permanent loss of his registration,” the OSC’s decision notes.

The OSC also acknowledges that Doe’s conduct did not lead to any harm to investors, that he has generally been co-operative with the regulator, and that he has taken remedial action to minimize the possibility of further misconduct in the future.

Ultimately, the director approved the settlement agreement, allowing him to seek registration after 12 months, subject to conditions.

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