The Investment Industry Regulatory Organization of Canada has ordered a former registered representative with RBC Dominion Securities Inc. in Toronto to pay more than $5 million in fines and costs for misappropriating client funds and misrepresenting payments to investors.

On January 18, an IIROC hearing panel accepted a settlement agreement between IIROC staff and Henry Cole.

In the agreement, Cole admitted that between February 2009 and December 2010, while a registered rep, he misappropriated approximately $5 million of client funds, created false documents, and misrepresented payments to investors out of a pool of investor funds as being returns on investment.

Cole agreed to a fine of $5,020,022 and a permanent ban from registration with IIROC. He also agreed to pay $10,000 in costs.

IIROC formally initiated the investigation into Cole’s conduct in December 2010. The violation occurred when he was a registered rep with RBC DS in Toronto. Cole is no longer a registrant with an IIROC-regulated firm.