Former CIBC rep fined and banned for misconduct

first_img A Mutual Funds Dealers Association of Canada (MFDA) hearing panel has fined Deborah Louise Bartolini, a former dealing representative with CIBC Securities Inc., $50,000 and banned her permanently from conducting securities-related business in any capacity while employed by, or associated with, an MFDA member firm for infractions related to the theft and borrowing of client funds. Bartolini was also ordered to pay costs of $5,000 for misconduct connected to the three allegations that occurred while she was employed by the mutual fund arm of Toronto-based Canadian Imperial Bank of Commerce (CIBC) in Welland, Ont., according to the MFDA’s decision and reasons, released Thursday. Keywords EnforcementCompanies Mutual Fund Dealers Association BFI investors plead for firm’s sale PwC alleges deleted emails, unusual transactions in Bridging Finance case Mouth mechanic turned market manipulator Tessie Sanci center_img The MFDA hearing panel determined that the full penalty is equal to the seriousness of the allegations, as it states in the decision: “In the securities industry, few allegations can be more serious than theft from a client. …Borrowing from a client is also a serious matter.” Bartolini admitted to unauthorized discretionary trading and theft of client funds in August 2013 when she processed a redemption of $25,000 from the investment account of an 88-year-old client without that individual’s knowledge. Bartolini then arranged to have those funds moved to another bank and deposited in a joint account belonging to herself, her aunt and her son. CIBC reimbursed that client $25,000 and any interest connected to that amount in March 2014. The second allegation involves personal financial dealings Bartolini had with two clients who were a couple. Bartolini admitted to borrowing $13,000 from the couple in 2013 and promising to pay interest on that loan. That loan was made possible because the couple obtained the funds from their line of credit at CIBC. Bartolini then asked for a second loan of $50,000, which the couple denied. CIBC was unaware of the situation at the time it occurred. Bartolini repaid $2,940 to the couple between June and December 2013. CIBC reimbursed $10,060, the remaining unpaid portion, to the couple in March 2015. In late 2013, Bartolini also attempted to borrow $5,000 from an 86-year-old client but the client denied the request. The MFDA hearing panel, in explaining its decision, makes it clear that the penalty is appropriate, but that there were factors that worked in Bartolini’s favour. Specifically, the panel decided against setting a higher fine because Bartolini had not been the subject of past MFDA disciplinary proceedings; she co-operated with the MFDA in this matter and accepted responsibility; and she has shown remorse for her conduct. The fact that CIBC had reimbursed the clients involved in the illegitimate transactions was also a consideration that was taken into account. Although the MFDA hearing panel also notes in its decision that Bartolini is unlikely to pay the fine because of a lack of funds, the decision still sends a message to those in mutual fund industry regarding the seriousness of these infractions. An additional deterrent comes from the fact Bartolini is the subject of criminal charges based on this conduct, according to the hearing panel’s decision. Bartolini was a dealing representative with CIBC Securities between August 1994 and December 2013. She was also registered as a branch manager with CIBC between May 2002 and May 2010. She is not currently employed in the securities industry in any capacity. Share this article and your comments with peers on social media Related news Facebook LinkedIn Twitterlast_img

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