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by Mike Caswell
The Investment Industry Regulatory Organization of Canada has scheduled a hearing for Joseph Rochon, an eight-year employee of Industrial Alliance Securities Inc., after a group of seniors suffered losses. IIROC says that Mr. Rochon placed retired or retiring clients into an aggressive investment strategy that involved taking concentrated positions in out-of-favour stocks. He also recommended that they borrow money in order to finance the trading, IIROC claims.
The allegations against Mr. Rochon are set out in a notice of hearing that IIROC released on Thursday, Sept. 5. IIROC claims that from November, 2011, to May, 2017, Mr. Rochon failed to make suitable investment recommendations to four clients, each of which was a vulnerable and had limited investment knowledge. The clients sustained losses that amounted to about one-third of their portfolios, according to IIROC.
Two of the clients, a couple only identified as "SN" and "GN," had been friends with Mr. Rochon for more than 20 years, according to the notice. IIROC says that they relied entirely on Mr. Rochon for investment expertise and recommendations. They opened accounts with him in November, 2011, transferring in holdings that mostly consisted of mutual funds.
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