(September 21 – 15:15 ET) – The Ontario Securities Commission has permanently banned former mutual fund dealer Patrick Joseph Kinlin from trading. The OSC has also ruled that Kinlin will not be allowed to trade for his own RRSP purposes through an intermediary.
In January, Kinlin pled guilty to 28 counts of fraud over $5,000. He was sentenced to five years in jail and was ordered to make restitution of $12.5 million.
The OSC deliberated over its decision to restrict Kinlin’s ability to trade within his RRSP. “Although excessive regulation should be avoided, when a danger to the public is demonstrated through egregious conduct, as in the present case it is better to be on the side of safety.” The OSC panel referred to an earlier case involving former broker Kevin Andrus. In that case, the OSC banned Andrus outright, too. Kinlin’s conduct “was certainly egregious. As we have said, it was despicable. In our view, we should, like the panel in Andrus, err on the side of safety, safety of investors and the marketplace.”
During his career, Kinlin was registered with Mutual Investco Inc., WealthWorks Financial Inc. and Keybase Investments Inc. until June 22, 1999. He was dismissed from all three companies for cause.
The OSC alleged that much of the money he collected from clients “was diverted for his own personal use to support his own lavish lifestyle.” When it became obvious that his fraud what about to be discovered in 1999, Kinlin fled to the United States. After he was discovered in Pennsylvania, he was extradited to stand trial.
-IE Staff