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by Mike Caswell

The Canadian Investment Regulatory Organization has imposed a two-year ban on Thomas Leonard Keough, a former Investors Group Financial Services Inc. employee who transferred $405,971 from the account of an 80-year-old client without authorization. CIRO says that Mr. Keough moved the money as part of a supposed estate planning exercise, but the net result would have seen Mr. Keough's daughter receive the money. On top of that, Mr. Keough assigned himself an interest in the client's life insurance policy, according to CIRO.

The penalties for Mr. Keough, 79, are contained in a decision released on Thursday, Dec. 4. In addition to the two-year ban, Mr. Keough must pay an $18,000 fine and $3,500 in CIRO's costs. The penalties represent a negotiated settlement, in which Mr. Keough has admitted to the violations.

The case, as set out in the decision, arises from transactions in 2021 in the account of an 80-year-old client, only identified as "CO" by CIRO. According to the decision, Mr. Keough opened a new account that was jointly held by CO and Mr. Keough's daughter. He then transferred $405,971 from CO's other accounts into the joint account, all without the client's authorization or knowledge, CIRO claims.

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