The Investment Industry Regulatory Organization of Canada (IIROC) has fined a former broker in Ontario $75,000 for misleading clients about their investments and providing false account statements.

According to IIROC documents, between 2005 and 2012, Mark Fridgant provided two clients – a married couple – with false account statements. During the time in question Fridgant was an advisor with PI Financial Corp. (2011 to 2013), Jennings Capital Inc. (2006 – 2011) and Canaccord Capital Corp. (1999 to 2006).

Fridgant referred to the account statements he provided to the clients as “portfolio updates.” When questions about discrepancies between these updates and statements sent from PI Financial, Fridgant told the clients that administrative reasons accounted for any inconsistencies.

In another case, two clients asked for an update regarding a principle protected note (PPN) in 2012, which was no longer showing on their account statements. Fridgant informed the clients that they still held the investment but that a record of it had not transferred to PI Financial when he switched firms. In reality, IIROC found that the PPN had been sold at a loss in 2009.

In response to the client’s requests, Fridgant sent them an email with what he said was a summary of investments held in the accounts. The email listed the PPN, which was sold in 2009 and exaggerated the clients’ holding by about $400,000. Furthermore, IIROC found that Fridgant led the clients to believe they held multiple accounts when in fact they only had the one joint account with PI Financial.

Shortly after sending this account summary and a subsequent meeting with his branch manager, Fridgant sent the first of three doctor’s note to PI Financial. The notes stated Frigant would be absent from work due to an unspecified medical reason. According to IIROC documents, Fridgant never returned to work and did not cooperate with either of PI Financial’s or IIROC’s investigation into the complaints. IIROC’s attempts to contact Fridgant at two addresses were unsuccessful.

In addition to the fine, IIROC ordered Fridgant to pay $50,000 and is permanently banned from IIROC approval.

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