The Quebec District Council of the Investment Dealers Association of Canada has imposed penalties on Eric Gaudreault, a former rep with the Chicoutimi branch of Nesbitt Burns.

Gaudreault is permanently banned from employment with a member firm, and receives a fine of $97,000, plus disgorgement of illegal profits and commissions totaling $26,326.82. He must also pay $7,350 toward the IDA’s investigation costs.

According to the IDA, Gaudreault was found guilty of forging signatures, falsifying documents and fraudulently appropriating funds belonging to two clients for a total amount of $37,000.

He was also found guilty of carrying out several unauthorized discretionary transactions in the accounts of five clients.

Gaudreault was dismissed by Nesbitt Burns, and clients with financial damages were compensated by the firm. The IDA says it observed no lack of diligence in the firm’s supervisory responsibilities regarding Gaudreault.

In rendering its decision, the District Council indicated that a clear message needed to be sent that such conduct will not be tolerated and that offences of such gravity shall command the severest penalties.