A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a permanent ban against a former RBC Dominion Securities investment representative after finding that she misappropriated funds and failed to co-operate with an IIROC investigation.

The misappropriations occurred from about February to July 2008, while Krista Dettelbach was an investment representative with the Toronto branch of RBC Dominion Securities Inc.

IIROC formally began its investigation into Dettelbach’s conduct in July 2008. She failed to attend an IIROC interview in November 2009.

Specifically, the panel found that Dettelbach misappropriated funds by improperly changing the orders of approximately 15 clients, without any instructions from clients, so that two other client accounts would profit from the trading activity. Ms. Dettelbach had previously introduced those two particular clients to the firm.

The IIROC hearing panel noted that it was part of her role to introduce new business and her compensation included a bonus on assets brought in, plus a percentage of the revenue generated by those assets. The panel found that through 53 improper trade tickets, the approximately 15 clients sustained losses totaling in excess of $163,000.

In addition to the ban, the panel’s decision ordered Dettelbach to pay a $75,000 fine and $40,000 in costs.

In explaining its decision, the panel stated, “We believe it is incumbent upon this hearing panel to communicate to the respondent, to the public and to the investment industry as a whole that serious consequences will befall those who engage in activities similar to those of the respondent.”

Dettelbach is no longer registered in any capacity with an IIROC-regulated firm.

IE