The Investment Industry Regulatory Organization of Canada (IIROC) has fined a Toronto rep $25,000 for falsely endorsing client signatures and engaging in discretionary trading.

The conduct occurred when Harrison Keenan was a registered representative with a Toronto branch of Scotia Capital Inc.

On May 15, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Keenan.

Specifically, he admitted that from May 2010 to July 2011 he signed certain of his clients’ names on investment related documents and passed the signatures off as the clients’ own.

Keenan also admitted that from May 2011 to March 2012 he engaged in discretionary trading in the accounts of one of his clients.

Keenan agreed to the following penalty:

  • a $25,000 fine;
  • disgorgement profits of $4,398.97;
  • suspension of two months; and
  • strict supervision for five months, with reporting requirements to be made internally with his member firm.

He also agreed to pay $5,000 in costs.

IIROC formally initiated the investigation into Keenan’s conduct in September 2012.

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Addendum (January 08, 2014)

As mitigating factors, the IIROC panel noted in its decision that Keenan showed remorse, now understands his conduct violated IIROC rules and cooperated fully with investigations by IIROC and Scotia.

The panel noted that Keenan did not sign the names for personal gain or dishonest or fraudulent purposes, the sign offs were a matter of convenience for a small number of clients and that he believed he had the clients’ consent to sign their names.

Keenan is currently a registered representative with Dundee Securities Ltd. (Source: Advisor Report.)