A former Richmond investment advisor has been fined $50,000 and banned for four years for misconduct, according to the Investment Industry Regulatory Organization of Canada (IIROC).
Following a disciplinary hearing in August in Vancouver, the IIROC announced earlier this month that the hearing panel found Alberto Storelli was liable of compensating clients, providing an unauthorized account statement to clients, making misrepresentations to IIROC enforcement staff and failing to cooperate during the regulatory body’s investigation.
The IIROC enforcement counsel argued the clients were vulnerable as some were senior citizens, and others had a familial or friendship connection with Storelli, according to the decision.
At the time of the violations, Storelli was a registered representative with the Richmond branch of Global Maxfin Capital Inc, an IIROC-regulated firm.
The sanctions follow allegations that from Sept. 2014 to Dec. 2017 Storelli paid financial compensation clients without the knowledge or approval of Global Maxfin – including payments to clients who made complaints – and, on or around June 2015, provided clients an unauthorized account statement about the value of a private company.
“Whether or not the account statement was false, this is a serious offence because it deceives both the client and the Dealer Member,” the decision reads.
The allegations also include that, between January 2017 and January 2018, Storelli made misrepresentations to IIROC enforcement staff during their investigation – relating to past dealings with clients prior to working at Global Maxfin – and, between February 2018 and March 2018, failed to cooperate with enforcement staff.
The decision notes Storelli did not respond to the allegations against him or appear at any prehearing conferences.
The panel noted Storelli is dealing with a medical condition, according to the document, and it had adjourned the matter several times and offered to provide accommodations.
As he did not provide evidence that he was unable to or incapable of proceeding with a hearing, the panel proceeded with the hearing, which was done in his absence.
He had no previous disciplinary history.
The IIROC launched an investigation into Storelli in January 2017. Storelli also resigned in that year and has not been registered with the IIROC since.
Storelli was fined $50,000 and prohibited from approval for work in the investment industry in any capacity for four years. He was also ordered to pay $10,000 in costs to the IIROC.