The Investment Industry Regulatory Organization of Canada (IIROC) has fined and levied additional sanctions against former Canaccord Genuity Corp. registered representative, Jeffrey Callaway, after Callaway admitted he received cash contributions to his political campaign from 15 clients.
The campaign donations – personal financial dealings with clients, according to IIROC, and a violation of Canaccord’s policies and procedures manual – totalled $24,900 from 15 clients, many of whom contributed $1,000 or more. Callaway received the funds between July and October 2017 when he was a candidate for the leadership of the Alberta United Conservative Party. Callaway says prior to being a candidate he informed his branch manager. He adds that the fifteen clients were also his friends and family. IIROC’s settlement agreement also states that the leadership campaign was public knowledge.
That said, IIROC’s agreement with Callaway further states that he did not tell Canaccord that he was seeking campaign contributions or that he received funds. IIROC formally initiated its investigation into Callaway’s conduct in September 2019.
Registered with IIROC since 1999 and registered with Canaccord since January 2006, the firm terminated Callaway’s employment in August 2019.
In addition to a fine in the amount of $20,000, IIROC also ordered Callaway to pay costs in the amount of $3,000. He is banned from re-registration for a period of three months and must submit to close supervision for six months upon any re-registration with any IIROC regulated firm.
