CIRO fines BMO Nesbitt Burns $1.5-million
2024-04-05 20:20 ET - Street Wire
Also Street Wire (C-BMO) Bank of Montreal
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by Mike Caswell
The Canadian Investment Regulatory Organization has fined BMO Nesbitt Burns Inc. and one of its employees, Yujie (Jared) Liu, over a trading strategy that inflicted $39.7-million in losses on Mr. Liu's clients. CIRO says that Mr. Liu's strategy, which involved short sales of government bonds as a form of margin, was not suitable for his clients. His supervisors learned of his strategy, but did little to address the problem, CIRO claims.
The penalties for BMO and Mr. Liu are contained in a settlement agreement that CIRO released on Friday, April 5. BMO has agreed to pay a $1.5-million fine and to disgorge commissions of $146,876. Mr. Liu has agreed to pay an $80,000 fine and to disgorge $63,258 in commissions. Mr. Liu must also complete the Conduct and Practices Handbook course before becoming registered again.
The sanctions arise from a trading strategy that Mr. Liu began using in 2015. The strategy involved clients entering short sales of long-term government bonds and using the proceeds to purchase preferred shares. The preferred shares were in well-established companies and were lower risk in nature.
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Seams a little light on the fine... more like a slight tap on the wrist. Maybe double the losses of their clients and restitution. I think BMO can afford it and this parking ticket will do nothing to change behavior.
Posted by Dave at 2024-04-06 10:26
"CIRO says that BMO has since paid some of the clients to settle civil litigation."
From 2018 to 2024 is six long years and all of the clients haven't been made whole?
Posted by halcrow at 2024-04-06 19:47
Why does the SEC and US Justice Department send criminals to jail but in Canada CIRO gives meaningless fines and sends criminals back to work again. Self Regulation doesn't work. The Canadian Federal Justice Department needs to provide a regulatory body with appropriate fines and incarceration to any individual involved with or the cover up of criminal acts.
Posted by Dave at 2024-04-08 08:48
Why does the SEC and US Justice Department send criminals to jail but in Canada CIRO gives meaningless fines and sends criminals back to work again. Self Regulation doesn't work. The Canadian Federal Justice Department needs to provide a regulatory body with appropriate fines and incarceration to any individual involved with or the cover up of criminal acts.
Posted by Dave at 2024-04-08 08:48
SEC putting dudes in prison and huge fines. Just like ms goody two shoes who lied to financial institutions and was under house arrest got off, this dude got off also--- notice the reason why? wtf going on? bolsheviks get off. Now the evidence is clear with 2 getting off, since 1980's bolsheviks have been in power in the SEC and Canada. ridiculous
Posted by oh at 2024-04-08 10:43
These people had their money stolen from so called certified professionals. They paid to have regulatory oversight and paid fees to have their money mismanaged with no oversight. The certified professionals who stole and mismanaged their money got to keep the majority of it. They used that money to pay lawyers to dispute their criminal acts in civil court.
The person who paid to be stolen from had to pay a lawyer to retrieve part of the money that was willfully and knowingly stolen and mismanaged by Criminal Canadian Corporations while the Canadian Federal Justice Department ignores its dirty backyard.
Shame on Canada.
Posted by Dave at 2024-04-08 11:24
"SEC putting dudes in prison and huge fines"
The SEC is federal, and, in Canada, every province has a securities commission, some of which are likely more aggressive and effective than others.
Whether the fines levied by the SEC are paid is an unknown, but in BC, the outstanding balance is astounding.
In BC, the RCMP, who are tasked with investigating certain financial crimes, can't be all that effective as a don't recall reading about a successful (or unsuccessful) securities case they've initiated in the two decades they've been busy.
The Vancouver City Police do have a fraud squad, but I don't think that they take on securities cases.
Posted by halcrow at 2024-04-08 11:42
Canada's Financial Industry nothing but a Massive Fraud with no Federal Government oversight. Easy to see why your Investment firms and Banks are doing so well. They get to steal knowing full well nothing is going to be done to them other than a meaningless fine.
Canadians stop being suckers and invest in the US markets only. At least you will have some protections and recourse. Look at what BMO did to its paying customers, some have still not been made whole, others never will be and they get to continue doing it and no one goes to jail. What other industry in Canada can you get away with criminal acts?
Posted by Dave at 2024-04-08 12:17
you both still kicking, good to see. All Canadian securities prosecutions have been political in nature and have been concentrated on allowing the privileged to take over Canadian mining. Every Canadian big major miner is gone, as Murray Pezim predicted in 1980's, he himself being a victim of the political takeover by hongkong privileged and south african privileged whom both need to extract from those two domains in the 1990's. Now swiss, lol, south african, british, brazlian miners own Canadian mining and with their accounting departments, never pay taxes in Canada. Go figure Murray Pezim opened his big yap and became one of the victims of Canadian mining takeover.
Posted by oh at 2024-04-08 16:01