A hearing panel of the Canadian Investment Regulatory Organization (CIRO) has banned former licensed assistant, Patricia Sonne from conducting securities-related business with any CIRO member firm, after it was discovered that Sonne obtained, possessed and in some cases used pre-signed account forms to process transactions.
Specifically, Sonne was found to have used 31 pre-signed forms for seven different clients between October 2015 and September 2019.
The Belle River, Ontario registered dealing representative with Quadrus Investment Services Ltd. was the assistant of Maurice Gary Mailloux, himself sanctioned by the Mutual Fund Dealers Association of Canada (MFDA, one of CIRO’s predecessor organizations) in April 2022. Sonne is no longer a registrant with any CIRO-regulated firm.
“As principal approved person, Mr. Mailloux provided investment advice and obtained instructions from clients concerning account changes to be made and trading to be processed in client accounts and the respondent (Sonne) would prepare the documentation required to implement the instructions,” CIRO’s decision and reasons document states.
Mailloux reported discovering the pre-signed forms in his filed to the firm in September 2019. By October that year, the firm in turn reported the matter to the MFDA. Mailloux later admitted he had obtained client signatures on account forms that were not fully complete when the client signed the forms. A subsequent branch review discovered pre-signed and altered account forms in the files of two other approved persons who worked at the branch, including Brian Sonne and Moe Mailloux Jr., both of whom also later settled with the MFDA.
In addition to a $15,000 fine and costs in the amount of $5,000, Mailloux was placed under close supervision for a year and charged $2,400 to cover the associated costs. Patricia Sonne, meanwhile, registered since September 2009, was terminated by Quadrus in September 2019.
In addition to the two-year prohibition, Patricia Sonne agreed to pay a fine in the amount of $2,500 and costs totalling $5,000.