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by Mike Caswell

The Canadian Investment Regulatory Organization has begun proceedings against Omer Naek, a former TD Waterhouse Inc. employee accused of misappropriating over $200,000 from the accounts of clients who were vulnerable or who had died. CIRO says that Mr. Naek used client money to pay a construction contractor he was buying a new house from. He also made outright withdrawals of client money, CIRO claims.

The allegations are contained in a notice of hearing that CIRO released on Monday, Feb. 24. The events at issue go back to April, 2019, when a 72-year-old client, only identified as "TDT" in the hearing notice, opened brokerage accounts with Mr. Naek. The accounts, as described by CIRO, were short-lived, as the client died on March 6, 2020.

According to CIRO, Mr. Naek began misappropriating money from those accounts shortly after TDT's death. On May 29, 2020, he opened a forged bank account in the client's name, and then transferred $60,000 from the client's brokerage accounts to that bank account, the hearing notice states. With the money in the forged bank account, Mr. Naek then obtained a $20,000 bank draft payable to a construction contractor who was selling him a house, CIRO says. Mr. Naek also withdrew $5,000 from the account, according to CIRO.

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