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by Mike Caswell

The Investment Industry Regulatory Organization of Canada has imposed a permanent ban and a $275,000 fine on former BMO Nesbitt Burns employee Jeffrey Edward Gebert. The regulator says that Mr. Gebert's actions, which it calls "particularly troubling," included borrowing $524,000 from a 93-year-old client. The resulting financial calamity forced the client to move in with his daughter.

The sanctions are contained in a decision that IIROC released on Thursday, Dec. 8. The case targets Mr. Gebert, a Toronto employee of BMO Nesbitt Burns from July, 2005, to October, 2012 (and later Manulife Securities Inc. until January, 2016). The decision describes how Mr. Gebert started to borrow money from a client in March, 2010, when the client was 93 years of age. Over a two-year period, Mr. Gebert borrowed $524,000. A substantial amount of the loan money came from securities that the client sold at Mr. Gebert's recommendation, the decision states.

IIROC only identifies the client as "JT," but it does say that JT was far from an ordinary client to Mr. Gebert. JT is the grandfather of Mr. Gebert's wife and had been Mr. Gebert's client since December, 1997. When Mr. Gebert borrowed the money, he said that it was to pay for the education of his child. He did not mention that he also used the money to pay down a high-interest mortgage, IIROC says.

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