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by Mike Caswell
The Investment Industry Regulatory Organization of Canada has imposed a four-year ban and $60,000 in financial penalties against Alberto Storelli, a former Global Maxfin Capital Inc. employee. IIROC has found that Mr. Storelli made an undisclosed payment to a client who then withdrew a complaint. Mr. Storelli also sent an unauthorized account statement that indicated a security with no determinable value was worth $50,000.
The penalties for Mr. Storelli are contained in a decision that IIROC released on Wednesday, Oct. 13. They follow a one-day hearing that IIROC held on Aug. 13, 2021, in Vancouver before a three-member panel. Mr. Storelli did not attend. (He had previously sought to delay the matter, citing a medical condition. IIROC put off the hearing for over a year, and agreed to various changes to its procedures that would have allowed Mr. Storelli to attend, but he still did not appear for the hearing.)
The case arose from Mr. Storelli's handling of the accounts of several clients, including one only identified as "LC." According to IIROC, Mr. Storelli opened an account for LC in 2010, and advised that LC borrow money to purchase mutual funds. The idea was that the returns from the mutual funds would cover the interest on the loan.
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