A former registered representative at CIBC World Markets is asking the Ontario Securities Commission to review a decision by the Investment Industry Regulatory Organization of Canada which found that he falsified client documents and breached various other IIROC rules.
Following disciplinary hearings held last year, an IIROC hearing panel issued a decision in October 2011, finding that Shaun Gerard McErlean engaged in misconduct while employed by CIBC Wood Gundy and CIBC World Markets as a registered representative.
The panel found that from January 2008 to January 2009, he provided falsified account documents to two clients and misrepresented investment information to two clients about their accounts. IIROC also found that from he made discretionary trades in the account of a client without first having her written authorization or having the account approved as discretionary by his firm. In addition, the panel determined that McErlean personally compensated two of his clients for losses in their accounts without the knowledge or approval of his firm.
IIROC announced on Tuesday that McErlean has filed a request for a hearing and review of the decision with the OSC.
Also on Tuesday, IIROC announced penalties against McErlean.
He has been ordered to pay fines totalling $75,000 for his misconduct, along with costs of $15,000, and he’s been barred from approval for a period of five years. For one year thereafter, if he decides to re-register, he’ll be required to have all trading approved by a supervisor, and any client account generating in excess of $1,500 per month in commissions must be reviewed by the CEO of the firm.