A former rep that stands accused of the murder of a former client has been found liable for industry violations by the Investment Industry Regulatory Organization of Canada (IIROC).
IIROC announced Tuesday that, following a disciplinary hearing on March 3, a hearing panel found that former rep, Brian Malley, violated IIROC rules by failing to cooperate with an IIROC investigation, failing to know the essential facts of 12 of his clients, making unsuitable recommendations to 10 clients, and engaging in discretionary trading in the accounts of seven clients.
The panel also found that his wife and former branch manager, Christine Malley, violated IIROC rules by failing to cooperate with an IIROC investigation, and failing to exercise her supervisory responsibilities concerning the accounts of 12 clients.
The violations occurred when he was a rep and she was a branch manager with the Red Deer branch of Assante Capital Management Ltd. IIROC has not yet handed down penalties in the case.
In 2012, Malley was charged with first-degree murder in the death of a former client who was killed by a letter bomb in 2011.
The Malleys, and Assante, are also facing a class action suit from several former clients alleging negligence and/or fraud in managing their funds. (See Investment Executive, Class action against former advisor to proceed, March 13, 2014.)
Those cases have not been heard, and the allegations have not been proven in either case.