The Investment Industry Regulatory Organization of Canada has fined a pair of Montreal brokers $350,000 for engaging in outside business activities without proper disclosure and authorization from their dealer.
On January 25, an IIROC hearing panel accepted a settlement agreement between IIROC staff and Konstantine Dariotis and Alfonso Fiumidinisi.
Dariotis and Fiumidinisi admitted that they engaged in outside business activities without proper disclosure and authorization from their employer.
The conduct occurred between 1991 and 2005 when the pair were registered representatives with the Montreal branch of RBC Dominion Securities Inc.
The duo admitted referring individuals including clients of RBC DS to offshore banks, obtaining and acting upon trading authority over most of these offshore accounts, and facilitating these individuals to invest in offshore funds for which both reps had an interest to earn fees and commissions.
Dariotis and Fiumidinisi agreed to pay IIROC a $350,000 fine, and to each be suspended from any registered capacity with IIROC for a period of two months. They also agreed to pay $50,000 in costs.
IIROC formally initiated the investigation into the pair’s conduct in November 2006.
The pair are now employed with CIBC World Markets Inc.