CIRO fines former Investors Group employee Smith $1.5M
2025-06-20 19:53 ET - Street Wire
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by Mike Caswell
The Canadian Investment Regulatory Organization has imposed a permanent ban and a $1.5-million fine against Michael Rolland Smith, a former Investors Group Financial Services Inc. employee in Nova Scotia, for misappropriating $460,126. CIRO says that Mr. Smith repeatedly withdrew money from the account of a 74-year-old client, effectively draining her accounts. He provided the client with false account statements, which showed investments that did not exist, according to CIRO.
The penalties for Mr. Smith are contained in a decision that CIRO released on Thursday, June 19. The order effectively bars Mr. Smith from ever working in the industry again. In addition to the $1.5-million fine, he must pay $20,000 in CIRO's costs. There was no hearing, as Mr. Smith entered into a settlement agreement in which he admitted to his misconduct.
The events at issue, as set out in the settlement agreement, stem from a retiree who was one of Mr. Smith's clients, holding accounts with a combined value of $620,000 in 2017. Over a six-year period, Mr. Smith executed hundreds of transactions in which he redeemed investments in the client's accounts and arranged withdrawals that sent money to his bank account, CIRO claims. In order to receive the money, he submitted a form that falsely portrayed his bank account as belonging to the client, the settlement states.
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Well, this will likely be another $1,520,000 in uncollected (and likely uncollectible) fines imposed upon an individual by the Canadian Investment Regulatory Organization.
As to the criminal charges…well, lots of British luck with those as well, as there are extremely slim pickings B.C. case law there, too (best of luck" is a common British phrase used to wish someone success, often in a situation where success is not guaranteed).
Will the Canadian Investment Regulatory Organization be behind or before the Investors Group Financial Services Inc when it comes to chasing the nebulous rainbow?
Not that it matters…Don Quixote’s horse, Rozinante, just vanished from the tale as his rider tilted at windmills.
Posted by halcrow at 2025-06-20 22:30
extremely slim pickings IN B.C. case law there,
Posted by halcrow at 2025-06-20 22:33
lest we forget the accounting firm that "audits" the entity, that firm or inside accountants need to be banned also, a check into employee's account from one of the brokerage accounts---- methinks accountants were in on the scam and smith taking the fall for the whole gang of theives
Posted by oh at 2025-06-23 08:17