The Investment Industry Regulatory Organization of Canada (IIROC) has banned a former Montreal area rep for misappropriating client funds.
Following a hearing on August 8, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Alan Cusson.
Cusson admitted that between June 2004 and April 2008, he engaged in business conduct unbecoming or detrimental to the public interest when he misappropriated funds from one of his clients. He also admitted that he engaged in personal financial dealings with a client without disclosing and obtaining prior approval from his employer.
The violations occurred when Cusson was a registered representative with the Ville St-Laurent branch of Berkshire Securities Inc., now known as Manulife Securities Inc.
Cusson was the investment advisor of an 80 year-old retired technician from Bell, who had a net worth of $550,000 consisting of $250,000 of liquid assets and $300,000 of fixed assets.
During the course of their relationship, Cusson misappropriated $98,500 from the client. Of this total, $58,500 was misappropriated while Cusson was registered with IIROC.
The misappropriation was effected by Cusson directing the client to sign blank cheques under false pretenses. Cusson would then complete the cheques and make them payable to himself.
On at least two other occasions, Cusson directed his client to lend him a total of $25,000 without having disclosed and obtained the approval of his employer.
The panel imposed a permanent ban against Cussson from re-applying for registration in any capacity, as well as a $155,000 fine. Cusson also agreed to pay $10,000 in costs.
IROC formally initiated the investigation into Cusson’s conduct in March 2010. He is no longer a registrant with an IIROC- regulated firm.