An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has banned former advisor Wasseem Dirani, permanently from the investment industry, fined him $266,000 and ordered him to pay costs of $12,000 after finding that he misappropriated money from clients, among other regulatory violations.
The IIROC hearing panel handed down the penalty after a hearing in which it found that Dirani, a former advisor with IPC Securities Inc. in Toronto, “misappropriated funds from clients, executed unauthorized trades in client accounts, engaged in personal financial dealings with clients” and failed to co-operate with IIROC’s investigation.
The fine is comprised of a $136,000 penalty for misappropriation; $50,000 for having personal financial dealings with clients; $50,000 for failing to co-operate with the regulator’s investigation; and $30,000 for unauthorized trading. Dirani is no longer registered.
In 2014, Dirani settled allegations from IIROC, admitting to suitability failures and engaging in undisclosed personal business with a client without his firm’s knowledge. In that settlement, he agreed to a $40,000 fine along with $5,600 in costs and disgorgement and 12 months of strict supervision.