The Investment Industry Regulatory Organization of Canada (IIROC) announced it has accepted a settlement agreement, with sanctions, between IIROC staff and Francesco Coccimiglio. In the agreement the advisor, formerly of TD Waterhouse Canada Inc., admitted that he engaged in personal financial dealings with a client he’d become close with.

According to the settlement documents, Coccimiglio first became the client’s registered representative in July 2012 when he worked with TD Waterhouse. The 85-year-old client, identified only as JP in the settlement, was reportedly estranged from his family and had health issues. Coccimiglio became close with the client, speaking to him a couple of times each week, taking him to doctor’s appointments and assisting him with errands. JP asked Coccimiglio to become his Power of Attorney (POA) in spring 2017.

Coccimiglio says his branch manager told him that he could become a POA if the client moved to another advisor, to the company’s direct investing division, or to a TD branch. The branch manager told IIROC that she recalled the discussion, but denies giving advice in the matter.

In May 2017, the advisor then assisted JP with the transfer of his Waterhouse account to a new direct investing account, arranging the necessary documentation for JP to sign. Although JP understood that Coccimiglio would no longer be his advisor, the client asserts that he did not understand that he was opening a new account. In July JP asked Coccimiglio to help him complete the POA forms, making him his POA for both personal care and for property.

Later in 2017, JP reportedly offered to loan Coccimiglio $200,000 with no interest, to assist with renovations to his home. The two together phoned TD to arrange a transfer from JP’s direct investing account to his bank account. The advisor used his work credentials to assist with the transfer. Two days later JP signed a check for $200,000, payable to Coccimiglio and his wife.

On the advice of his neighbor who had concerns about the loan and POA arrangement, JP revoked the POA with the help of a lawyer in January 2018. The following month, in late February, he informed Coccimiglio that he was no longer comfortable about the loan. Coccimiglio repaid the loan in full on March 1.

For contravening IIROC’s dealer member rules, Coccimiglio agreed to pay a fine in the amount of $25,000 and costs of $1,000.