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by Mike Caswell

The Canadian Investment Regulatory Organization has fined Cumberland Private Wealth and one of the firm's portfolio managers, Gary Perron, over Mr. Perron's undisclosed control over an offshore entity linked to an account worth as much as $152.3-million. CIRO said that Mr. Perron's offshore dealings amounted to unreported outside business activity. While Mr. Perron denies being a beneficiary of the assets, the true ownership has not been clearly established, according to CIRO.

The penalties for Mr. Perron and Cumberland are contained in a settlement agreement that CIRO released on April 28, 2025. Mr. Perron has agreed to pay a $200,000 fine, plus $50,000 in CIRO's costs. Cumberland must pay a $150,000 fine. In agreeing to the fines, Mr. Perron and Cumberland have admitted to the violations, at least for the purposes of settling the case.

The case arises from control of Keynard Ltd., a Belizean corporation that executed trades through Cumberland via another offshore entity called Butterfield Trust (Bermuda) Ltd. While the settlement agreement says little about what these offshore entities did, it does say that the value of Butterfield Trust's account ranged from $133.2-million to $152.3-million. It also says that the trail of ownership in Keynard led back to Mr. Perron.

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