By NanaimoNewsNOW Staff

Ex-Nanaimo investment broker banned and fined $125K

Jun 5, 2018 | 4:27 PM

NANAIMO — A former Nanaimo investment broker has been banned from Canada’s regulatory organization and handed a hefty fine for numerous illegal transactions, including losing more than $35,000 of a longtime acquaintance’s money.

The Investment Industry Regulatory Organization of Canada (IIROC) permanently banned Kenneth Edward Smith and fined him $125,000 following a recent unanimous decision by a hearing panel in Vancouver.

The panel found proof of five allegations against Smith, who was working for Nanaimo’s Queensbury Securities Inc. at the time of the offences.

It said Smith offered to invest a longtime acquaintance’s money to buy and sell futures on his behalf, despite not being registered to trade futures. This was considered off-book, or illegal, transactions by the IIROC.

Without notifying Queensbury or the acquaintance, the panel found Smith placed orders over the course of two years, eventually whittling down a $36,000 investment to less than $1,100.

sweet sounds

Nanaimo woman tries to coax trapped killer calf out of tidal lagoon with her violin

1h ago

grow local

'People can literally get their hands dirty:' Earth Day event to highlight Nanaimo food security

3h ago

murder trial

Closing arguments scheduled in trial of Nanaimo woman accused of dismembering ex boyfriend

17h ago

The IIROC found Smith was then given a loan for $7,500 from the same acquaintance for a personal business. He only made two payments on the loan, leading to the lender contacting Queensbury, who then fired Smith.

The panel also found Smith’s ownership stake in the business, Shine-On Chrome & Graphic Finishes Inc., constituted an “unapproved outside business activity” because he did not inform Queensbury of his stake in the company.

In another instance, the panel found Smith invested $10,000 on behalf of a former insurance client. Smith showed the woman several account statements over the course of a year, however would not return the money when asked.

When the woman contacted Queensbury, she was told she did not have an account with them, the panel’s ruling said.

The IIROC said Smith refused to be interviewed by their staff and told them he lives in Nanaimo and could not afford to attend his day-long hearing in Vancouver on May 3.

Smith did file a reply to the allegations, in which the IIROC said he “essentially admitted all of the allegations except for some minor details.”

He is also required to pay costs in the amount of $20,000.

info@nanaimonewsnow.com

On Twitter: @nanaimonewsnow