The Investment Industry Regulatory Organization of Canada (IIROC) has fined a former Markham, Ont. broker $50,000 for his role in a fraudulent mortgage scheme.

The penalty decision was made after a hearing panel held in February 2012 initially ruled that Steven Conville, along with two friends, had participated in and facilitated a mortgage scheme.

Rep participated in mortgage fraud scheme: IIROC

According to IIROC documents, between March 2009 and May 2009, Conville’s friends obtained a mortgage fraudulently in part by using false client account statements. The proceeds of the mortgage were then used to purchase Conville’s residence.

The decisions and reasons document states that over the course of IIROC’s investigation into the mortgage scheme and during the original hearing panel, Conville was working under supervision at his firm, Macquarie Private Wealth Inc., formerly Blackmont Capital Inc. On Oct. 25, 2012, Conville was let go from Macquarie.

In addition to the fine, Conville is suspended for six months from acting as a partner, director, officer or employee of a dealer member. The suspension is backdated to Conville’s loss of employment in October 2012. As a condition of re-registration, Conville must complete two courses offered by the Canadian Securities Institute called ethics, regulation and professionalization of the advisor and fraud in the securities industry.

As well, Conville is required to pay $15,000 in costs.