A Canadian Investment Regulatory Organization (CIRO) hearing panel has suspended former dealing representative, Neelgiri Chatterjee for one year and fined Chatterjee $12,500 after it was discovered that the representative canceled pre-authorized contributions (PACs) and set up new PACs for clients who wanted to make different contributions, in order to qualify for a bonus.
Between January and December 2020, the Halifax, Nova Scotia representative received instructions from 21 clients to amend the dollar amounts of their PACs. Rather than amending the PAC amounts based on the client’s instructions, according to the firm’s policies that these should be amended rather than canceled and re-established, Chatterjee instead set up 31 new PACs, all several days after receiving the client instructions, reflecting the new dollar amounts requested by the clients. In all instances, the regulator says Chatterjee created false and misleading notes. In at least six instances, Chatterjee solicited the clients directly to amend their PACs.
Registered in the securities industry since August 2014, Chatterjee was terminated in February 2021 and is not currently registered in the securities industry in any capacity.
In addition to the fine and one year suspension, Chatterjee was also ordered to pay costs in the amount of $5,000.
