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IIROC bans Austin, fines him $280,000

2017-02-21 20:56 ET - Street Wire

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by Mike Caswell

The Investment Industry Regulatory Organization of Canada has imposed a permanent ban and $280,000 in sanctions on former Manulife Securities Inc. employee Jeremy Austin. The regulator has found that Mr. Austin horribly mismanaged the accounts of a retired couple, inflicting about $400,000 in losses on them. Among other things, he traded the accounts so frequently that he generated $190,185 in commissions.

The sanctions are contained in a decision that IIROC released on Tuesday, Feb. 21. Mr. Austin's penalties include a $120,000 fine for unsuitable and unauthorized trading, a $50,000 fine for failure to co-operate with IIROC's enforcement process, disgorgement of $60,000 in commissions and payment of $50,000 in hearing costs. In addition, IIROC has permanently barred Mr. Austin from working in a registered capacity (meaning that he can never be an investment adviser in Canada again).

The penalties bring an end to Mr. Austin's five-year career in the securities industry, most of which he spent at Manulife and Edward Jones. The sanctions revolve around clients who had been with him for much of that relatively brief brokerage career. In its decision, IIROC has only identified those clients as AG and EG, a couple who immigrated from Cyprus in the 1970s. The husband, AG, had worked as an electrician and had owned several restaurants. The couple sold their last business in 2013, intending to use the money to retire.

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