A former registered representative in Ontario must pay $50,000 to the Investment Industry Regulatory Organization of Canada (IIROC) for conduct unbecoming.
Between August 2011 and April 2013, Douglas Eley misrepresented facts to his compliance department by inflating the net worth of some of his clients, according to IIROC documents. During the time in question, Eley was an investment advisor with the Burlington, Ont. branch of Macquarie Private Wealth Inc. (which is now owned by Toronto-based Richardson GMP Ltd.). According to IIROC, the Eley inflated the net worth of roughly 5% of his clients by 10% to 25% in order for them to qualify for a leveraged investment strategy offered by Macquarie.
As well, during the same time period, Eley falsely endorsed the signatures of several clients on account and loan documents. Eley also falsely endorsed a signature to allow a client to obtain funds from a registered retirement income fund (RRIF).
IIROC noted that while Eley was aware that his behaviour was inappropriate there are a few mitigating factors in his case. For example, Eley cooperated with the self-regulatory organization’s (SRO) investigation, none of his clients lost money as a result of his actions and he has no prior disciplinary record.
In 2013, Eley was terminated from Macquarie and lost his registration with IIROC. Since that time, Eley has worked with Chippingham Financial Group in a non-registered capacity. According to IIROC, 90% of Eley’s former Macquarie clients have moved over to Chippingham.
In addition to the fine, Eley agreed to pay $15,000 in costs. As well, Eley is prohibited from reapplying for registration for six months and his fines and costs are paid in full. Once re-registered, he will be subject to strict supervision for one year.