Schemes, Scams and Swindles

Elder Financial Exploitation

The unfortunate series of events began when Ying, an 85-year-old client, expressed her desire to gift money to Brian, her financial advisor. Brian took advantage of Ying’s vulnerability and generosity and prepared a document titled ‘Considerations for Will’ for Ying to take to a lawyer. This document appointed Brian as Ying’s power of attorney and executor for her estate and included a large gift of $750,000 to Brian.

Upon encountering resistance from Ying's first lawyer about her mental fitness, Brian swiftly sought out another lawyer to ease the transactions and his appointments to gain control over her financial assets. Ying later sold all her investments and $900,000 was deposited into her bank account.

Brian then went with Ying to her bank, where she got a bank draft to fund the $750,000 gift to him. Six months later, Ying passed away, triggering a legal battle between Ying’s family and Brian over the validity of the gift.

Conflicts of Interest

A conflict of interest arises when an advisor chooses personal gain over duties to their client or exploits their position for personal gain.

The Civil Claim

Brian’s offences came to light after it was discovered he accepted the $750,000 gift from Ying, which is a conflict of interest, without the knowledge of his firm. Brian also did not tell his firm that he had been served with a Notice of Civil Claim filed by Ying’s family, related to his dealings with her.

While the first civil claim contesting Ying's will was dismissed, later actions brought by her next of kin were settled out of court with the agreement of all parties. For breaching IIROC’s Conflicts of Interest and Standards of Conduct rules, Brian was slapped with a five-year suspension from any registration and ordered to pay a fine of $80,000, along with $5,000 in costs.

Things You Should Never Do With Your Investment Advisor

You should never name your advisor as your power of attorney or an executor in your will because it is contrary to CIRO rules and may place your advisor in a significant conflict of interest. You should also never name your advisor as a beneficiary of your will. When selecting a person to act under a power of attorney or as an executor, or naming a beneficiary of your will, it is best to consult with a lawyer or other professional who deals in estate matters.

Welcome to CIRO.ca!

You can find the Canadian Investment Regulatory Organization (CIRO) at CIRO.ca with our fresh look and feel.

The following sections of the legacy mfda.ca and iiroc.ca sites have been migrated to ciro.ca:

  • Enforcement
  • Hearings
  • Consultations
  • A unified member directory (Dealers We Regulate)
  • Advisor Report

We will continue moving items off MFDA and IIROC in 2024. Stay tuned for future updates.