A former registered representative with Scotia Capital Inc. has been fined $1 million by the Investment Industry Regulatory Organization of Canada (IIROC) for allegedly misappropriating $1.5 million from clients.

In a discipline decision released on Monday, IIROC outlined penalties facing Darlene Catherine Ryan, who was a registered representative with a Moncton, N.B. branch of Scotia Capital from September 1999 to August 2010.

According to IIROC, Between March 2005 and July 2010, Ryan engaged in manipulative, fraudulent and deceptive conduct by misappropriating approximately $1.5 million from five clients, including several elderly clients.

The funds were misappropriated through 31 unauthorized transactions in six client accounts. Ryan often forged the clients’ signatures on Letters of Authorization, which allowed her to fraudulently transfer the funds out of the client accounts, IIROC said.

Some of the transactions involved the movement of the same funds from one of the six accounts to another. In the end, more than $970,000 went missing.

The ultimate beneficiary of the misappropriations appears to have been Ryan or her friends and relatives, according to IIROC.

“[Ryan] took advantage of her clients who trusted her and relied on her for their financial well-being,” IIROC said in its notice of hearing. “[Ryan’s] conduct offends the foundation of trust upon which the securities industry relies, caused harm and great anxiety to her clients, and compromised the reputation and integrity of her Dealer Member firm.”

Ryan was terminated by Scotia Capital in August 2010 as a result of her misconduct, and has not been registered in the securities industry since then. In its reasons for decision, dated May 10, 2012, IIROC notes that Ryan’s whereabouts are unknown, and as a result, the regulator has been unable to obtain any information or documents from her in relation to the case.

Ryan failed to attend the disciplinary hearing, however the hearing panel found the facts and violations as alleged by IIROC to be proven.

Ryan has been permanently banned from approval with IIROC, and faces of a fine of $1 million and costs of $7,500.