A hearing panel of the Investment Industry Regulatory Organization of Canada has fined a Vancouver Island broker $220,000 for misappropriating client funds for his personal use.

Charles Kamal Dass was a registered representative with the Port Alberni, B.C., branch of Dundee Securities Corp.

Following a disciplinary hearing held on April 6, in Vancouver, the panel found following by-law contraventions:

• in May and June 2003, Dass engaged in personal financial dealings with his client, GN, without the knowledge or consent of Dundee;

• in May 2004, Dass engaged in personal financial dealings with his clients E & JK, without the knowledge or consent of Dundee;

• in March 2004, Dass misappropriated monies from his clients, EK and JK, without the knowledge or consent of those clients; and

• in January and February 2005, Dass attempted to frustrate and/or obstruct the regulator’s investigation by asking his former client, EK to make misrepresentations.

The hearing panel permanently banned Dass from approval with IIROC, and ordered him to pay $220,000 in fines and $83,184 in costs.

IIROC formally initiated the investigation into the Dass’s conduct on Jan. 14, 2005.

Dass is no longer a registrant with an IIROC-regulated firm.

The notice of hearing in this matter was issued in May 2006. At that time, Dass made a preliminary motion asserting that IIROC (the Investment Dealers Association of Canada at the time) no longer had jurisdiction over him as he was no longer a registrant in the industry.

An IDA hearing panel determined in a decision dated July 19, 2006, that the IDA in fact had jurisdiction to pursue disciplinary action over former registrants.

Dass appealed that decision to the British Columbia Securities Commission (BCSC) who upheld the IDA hearing panel decision.

Dass then appealed the decision of the BCSC to the British Columbia Court of Appeal. That appeal was heard in May 2008 and in a decision dated October 23, 2008, the Court of Appeal determined that the IDA (now IIROC) had jurisdiction to pursue disciplinary action against former registrants.

Dass did not seek leave to appeal the Court of Appeal decision to the Supreme Court of Canada.

The notice of hearing was sealed until the issue of jurisdiction was finally determined. The hearing panel issued its decision and reasons on May 5, 2009.

The panel’s decision and reasons are available at www.iiroc.ca.

IE