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by Mike Caswell
The Investment Industry Regulatory Organization of Canada has fined Leede Jones Gable Inc. employee Wayne Workun for mishandling the account of his mother, who was an elderly client with dementia. According to IIROC, Mr. Workun placed his mother into overly risky investments, inflicting losses that added up to $617,740, or 91 per cent of her portfolio. Among other things, he concentrated her in mining and oil and gas stocks.
The fine for Mr. Workun is contained in a settlement agreement that IIROC released on Thursday, Sept. 10. The settlement includes a $40,000 fine, which would have been higher were it not for Mr. Workun's inability to pay. IIROC has also imposed a 60-day suspension on Mr. Workun and barred him from serving as a branch manager for one year. In addition, Mr. Workun must pay $2,500 in IIROC's costs.
The penalties stem from Mr. Workun's handling of the account of his late mother, who in 2003 was a retired widow relying partly on her investment accounts for retirement income. She and her husband (who died in 2000) had held accounts with Mr. Workun for many years, following him as he changed firms. In 2007, after his mother moved out of her house and into a seniors' care home, her accounts were updated to increase the level of high-risk investments to 50 per cent from 25 per cent.
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A man who is a Brokerage Branch Manager, that knowingly destroys up to 91% of his own mother's retirement money, should NOT be in the business any longer; time was when such people would be shot, admittedly a long time ago
The Financial Services Industry will ultimately wear an even blacker stain on its "face", if this is possible. This Industry needs be better versed in the Law of Universal Compensation, AND its subtleties.