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by Mike Caswell

PI Financial Corp. employees Teymur Englesby and Cale Nishimura have defeated a case brought by the Canadian Investment Regulatory Organization over their sales of millions of shares for clients in transactions that appeared suspicious. The pair had been accused of failing to spot red flags in the accounts of a group of clients. The clients deposited large quantities of shares and then sold the stock within days, often in transactions that were uneconomic.

The dismissal of the case is contained in a decision that CIRO released on Thursday, Aug. 8. The matter arose from activity in a group of client accounts between December, 2017, and October, 2018, that included the sale of shares in 10 companies listed on the Canadian Securities Exchange. A group of clients deposited shares and withdrew the proceeds, at times in excess of $1-million, within days, CIRO said. The activity generated commissions that CIRO calculated to be $103,332.

The matter went before a three-member panel that heard the case over five days in June, 2024. In clearing Mr. Englesby and Mr. Nishimura of any wrongdoing, the panel found that there were reasonable explanations for the trading. The clients had occupations that were consistent with an individual who would often be selling stock, such as "Finance Consultant" or "Investor (Venture Capitalist)."

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