An Investment Industry Regulatory Organization of Canada (IIROC) hearing panel has permanently banned Marc Leon St. Pierre from registration in any capacity with any IIROC-member firm and imposed a fine in the amount of $1-million and costs in the amount of $100,000. St. Pierre must also disgorge $4.84-million after the hearing panel found the registered representative misappropriated funds from 16 client accounts.
Employed by ATB Securities Inc. since March 2008 and an IIROC registrant since January 2012, the Red Deer, Alberta representative between April 2015 and August 2021, misappropriated a total of approximately $10,403,000 from 16 client accounts, according to IIROC’s statement of allegations. The majority of his clients were over age 75. Those affected have been reimbursed by the firm in full, plus opportunity costs attributable to lost market gains. The firm terminated St. Pierre’s employment following an internal investigation concluded in August 2021.
The regulator’s statement of allegations continues, saying St. Pierre used five different methods and eight different processes to deliberately deceive clients and his employer and reduce the likelihood of detection. (The processes included using fake email addresses, changing account statements to electronic statements only, falsifying account statements, altering account statements, using fake mailing addresses, changing electronic fund transfer instructions and diverting tax slips.)
Of the funds misappropriated, St. Pierre also reportedly made frequent payments of funds between individual client accounts to cover up the misappropriations from other client accounts. Net funds retained by St. Pierre totalled $4,840,709. In an interview with IIROC staff, St. Pierre also specifically admitted to misappropriating approximately $4-million. IIROC says it will issue the panel’s written reasons for decision at a later date.
