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by Mike Caswell

The Canadian Investment Regulatory Organization has permanently banned Omar Naek, a former TD Waterhouse Inc. employee who misappropriated over $200,000 from clients in 2019 and 2020. CIRO said that Mr. Naek's victims included clients who were vulnerable or had died. He used some of their money to pay a construction contractor he was buying a new house from, according to CIRO.

The penalties for Mr. Naek are contained in a decision that CIRO released on Friday, Jan. 16. In addition to the permanent ban, the regulator has ordered Mr. Naek to pay a $100,000 fine and disgorge $59,151. On top of that, he must pay $5,000 in CIRO's costs.

The penalties come over six years after the events at issue, which go back to April, 2019, when a 72-year-old client opened accounts with Mr. Naek. The accounts, as described by CIRO, were short-lived -- the client died on March 6, 2020. According to CIRO, Mr. Naek began misappropriating money from the accounts of the client after his death. On May 29, 2020, he opened a forged bank account in the client's name, and then transferred $60,000 from the client's brokerage accounts to that bank account, CIRO said.

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