A hearing panel of the Investment Industry Regulatory Organization of Canada has found that a former National Bank Direct Brokerage registered representative violated IIROC rules by misappropriating approximately $60,000 from a client, a member of his family.

In its decision dated August 12, the panel also dismissed two IIROC charges which alleged that that Thi Sen Chher had modified, without approval, the same client’s personal address and investor profile.

Specifically, the panel found Chher took advantage of his position of trust with a client, his mother, by misappropriating her money to use for his own personal investments. Chher diverted client funds on 42 occasions for a total misappropriation of approximately $60,000.

“The evidence shows that, on dozens of occasions, the respondent [Mr. Chher] transferred monies from Mrs. C’s accounts to his own accounts … ,” the panel said in its decision.

“These monies served to finance trades which were substantially more aggressive than those authorized by Mrs. C’s investor profile … or to compensate overdrafts in his accounts which the respondent did not have the wherewithal to cover.”

The misappropriations occurred between Feb. 28, 2006 and May 4, 2007, when Chher was a registered rep with the Montreal branch of National Bank Direct Brokerage, an IIROC- regulated firm.

IIROC began its investigation into Chher’s conduct in August 2007. He is no longer registered with an IIROC-regulated firm.

The panel will meet at a future date to determine the Chher’s penalty.