A hearing panel of the Investment Industry Regulatory Organization of Canada has fined a former National Bank Direct Brokerage registered representative $25,000 for misappropriating funds belonging to his mother, a client of his employer.
In its decision dated August 12, the panel found that Thi Sen 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.
Montreal rep misappropriated money from his mother
In a penalty decision released Friday, the panel banned Chher from acting in any capacity for an IIROC dealer or a period of 10 years. In addition, the panel fined Chher $25,000 and ordered him to pay $25,000 in addition to the fine to offset costs incurred by IIROC.
“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 on liability.
“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.