The Investment Industry Regulatory Organization of Canada (IIROC) has permanently terminated the registration of Glenn Allan Prior, a former Ontario-based registered representative with RBC Dominion Securities Inc., based on document forgeries and the related criminal conviction against him.

At an expedited hearing held on January 7 in Toronto, an IIROC panel ordered that Prior’s rights and privileges of approval for registration in any capacity or category with IIROC be permanently terminated and that he pay $25,000 in costs of the investigation and hearing.

According to the IIROC notice of application, Prior opened a trading account that was guaranteed by his father while he working with CIBC World Markets Inc. After his father’s death, Prior, along with sister and brother, inherited his father’s account along with his sister and brother. That account continued to guarantee Prior’s own trading account.

Prior’s sister opened another account with him after her husband died in a car accident and she received a settlement. That account, with a balance of roughly $700,000, was also used to guarantee Prior’s personal trading account.

When Prior transferred from CIBC to RBC DS in 2006 all of his family’s accounts were transferred along with the guarantees. Eventually, it was discovered that Prior had forged the signatures of his brother and sister on the account and guarantee documents.

During this time, Prior’s account had terrible losses and by September 2009 its debit was almost equal to the balance in his sister’s account. Prior’s sister was unaware that she could have been forced to pay almost all of her capital to make up for the losses in Prior’s account.

Once the forgeries were discovered, RBC DS could not enforce the guarantees and so decided to take on the debt in Prior’s account.

in February 2012, Prior pled guilty in the Ontario Superior Court of Justice to the charge of causing his assistant to act upon forged documents between October 2006 and June 2009.

He was given a 22-month sentence to be served conditionally as house arrest, and a compensation order in favour of RBC DS for $676,289.41.

In the notice of application IIROC stated the forgeries resulted in “a significant fraud against RBC DS, [and] brings the capital markets into disrepute.”

Correction:
An earlier version of this article incorrectly stated that RBC DS brought the capital markets into disrepute.