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by Mike Caswell

The Canadian Investment Regulatory Organization has imposed a nine-month suspension on former RBC Dominion Securities Inc. employee Emilio Nafarrate after he overstated a client's assets to a lender. According to CIRO, Mr. Nafarrate represented the liquid assets of the client to be $250-million, but did nothing to verify those assets. In reality, the client's RBC account (which was with another adviser) had a negative balance, CIRO says.

The penalty for Mr. Nafarrate is contained in a settlement agreement that CIRO released on Monday, Dec. 16. In addition to the nine-month suspension, Mr. Nafarrate has agreed to pay a $14,000 fine and to pay $3,000 in CIRO's costs. In accepting the penalties, Mr. Nafarrate has admitted to the violations, at least for the purposes of the settlement agreement.

The case arises from a "proof of funds" letter that Mr. Nafarrate provided for a client in 2023. CIRO says that the client, who it only identifies by the initials R.V., had begun associating with Mr. Nafarrate in June, 2023, through a mutual friend. According to CIRO, R.V. claimed that he worked in real estate development and that he came from a wealthy family. At some point, R.V. told Mr. Nafarrate that he held an account at RBC that had liquid assets of $250-million, CIRO says.

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