A Canadian Investment Regulatory Organization (CIRO) hearing panel has accepted a settlement agreement with Robert Weston Crocker, wherein Crocker admitted he failed to update know your client (KYC) information that he knew to be incorrect. He also admitted that he completed the purchases of private placements for an ineligible client when he knew that client’s accounts were improperly classified by the firm.

Specifically, Crocker opened an account for a client while working with Canaccord Genuity Corp. – for the spouse of a registered representative Crocker worked with previously – and indicated that the spouse’s profession was in real estate. In response to the question about whether or not the client resided with any employee of any investment firm, the client answered no.

“The KYC did not otherwise include any reference to the fact that the RR was employed as a registered representative,” the settlement agreement states. “In light of the RR’s status,” they add, “the client’s account should have been, but was not marked as a PRO account at Canaccord.” 

Crocker subsequently completed five private placements in the client’s account, worth approximately $177,000 which were not PRO eligible.

First employed in the industry in May 2012, Crocker is not currently registered in any capacity. He has agreed to a fine of $30,000, was ordered to disgorge most of the commissions earned from the private placements – $8,078 in total – and agreed to pay $10,000 in costs. In addition to being suspended for six months, he must also re-write the Conduct Practices Handbook exam prior to re-registration and be subject to strict supervision for six months upon re-registration.