- Fines Imposed for Inappropriate DSC Charges
- April 13, 2015 | Authors: James Gibson; Landon Miller; Laura Paglia
- Law Firms: Borden Ladner Gervais LLP - Toronto Office ; Borden Ladner Gervais LLP - Calgary Office ; Borden Ladner Gervais LLP - Toronto Office
- Re Darrigo 2015 IIROC 03
Following an uncontested hearing on the merits, on January 23, 2015, IIROC fined Paul Christopher Darrigo (the “Respondent”) $60,000 representing a disgorgement of commissions of $50,000 plus an additional fine of $10,000 due to his improper sales of mutual funds with deferred sales charges.
In a decision released last fall, the Respondent was found to have solicited buys and sells of mutual funds on a deferred sales charge basis to the detriment of his (elderly) clients. He repeatedly sold mutual funds and then repurchased similar funds, subjecting his clients to redemption fees while generating commissions for himself. At times the mutual funds were held for less than a year. These transactions generated in excess of $60,000 in commissions for the Respondent.
The Respondent was also found to have borrowed from 2 clients, which resulted in a fine of $55,000, representing disgorgement of loan proceeds of $45,000, plus an additional fine of $10,000.
The Respondent was fined to 12 months of strict supervision and ordered to pay costs of $65,000.