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by Mike Caswell

The Investment Industry Regulatory Organization of Canada has begun a case against Vance Virgil Hoshizaki, a brokerage employee of 30 years, for spending client money and for having improper dealings with clients. According to IIROC, Mr. Hoshizaki's clients invested $536,000 in private entities that he controlled, and never saw their money again. The regulator says that Mr. Hoshizaki used at least some of the money to pay his credit cards and to buy personal items.

The allegations are contained in a notice of hearing that IIROC released on Wednesday, March 1. The regulator identifies Mr. Hoshizaki as a former employee of Assante Capital Management Ltd., where he had worked since 1997. According to IIROC, for much of his time at Assante Mr. Hoshizaki was engaged in undisclosed business dealings with the firm's clients.

These outside dealings, as described by IIROC, involved investments in a purported auto service franchise and a commodities trading business. IIROC claims that Mr. Hoshizaki began soliciting money for the auto franchise in 2002, collecting $413,000 from 14 clients. The clients paid the money to a numbered company that Mr. Hoshizaki controlled. According to the hearing notice, he assured the clients that the investment was low risk and that they could withdraw their investment at any time.

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