A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has fined and permanently banned Cynthia Nelson from registering with IIROC in the future after the former Montreal advisor failed on two occasions to attend an interview with IIROC staff.
Although IIROC counsel initially sought a permanent bar, a $50,000 fine and costs, the hearing panel ultimately imposed a $15,000 fine, the permanent ban from registration, and costs in the amount of $5,000. According to the hearing panel decision documents, IIROC’s actual total costs amounted to $26,931.12.
IIROC initially opened an investigation into Nelson’s conduct in August 2017, following an internal investigation into her conduct, conducted by Nelson’s employer, RBC Dominion Securities (RBCDS). Nelson was ultimately dismissed from RBCDS for allegedly accepting money transfers from third parties before transferring the money to other third parties “without providing satisfactory explanations on the legitimacy of these activities.” The amounts, totaling $5,500, were reportedly sent from Vancouver by individuals whose identity was unknown to her and which were intended for her spouse – a point she withheld during RBC’s internal investigation.
At her hearing, Nelson said she failed to attend both of the interviews scheduled with IIROC’s investigators because she was unaware of the scope of the accusations against her, she did not have counsel and she was simply afraid to show up.
