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by Mike Caswell

Enforcement staff at the Canadian Investment Regulatory Organization have filed an appeal of sorts after losing their case against Teymur Englesby and Cale Nishimura, two PI Financial Corp. employees accused of failing to spot red flags associated with the sale of millions of shares. CIRO claimed that clients deposited large quantities of shares and then sold the stock within days. The sales were often uneconomic, CIRO said.

The appeal comes after a CIRO panel cleared Mr. Englesby and Mr. Nishimura of any wrongdoing. The panel, which heard the matter over five days in June, 2024, found that the trading at issue could have had other explanations. The clients had occupations that were consistent with an individual who would often be selling stock, such as "Finance Consultant" or "Investor (Venture Capitalist)," the panel determined. It dismissed the case against the pair in a ruling released on Aug. 8, 2024.

With the loss, CIRO enforcement staff members have appealed the case to the B.C. Securities Commission. (Strictly speaking, the appeal is referred to as a review. A BCSC panel will take a second look at the CIRO decision, effectively functioning as an appeal court.)

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