A former broker with CIBC World Markets in Hamilton has been banned for life from the industry and fined $435,000 for misappropriation of client funds.

The Investment Dealers Association of Canada said Robert Binnington acknowledged that he cheated three clients out of a total of US$1.2 million and $410,000 in Canadian funds between November 1998 and July 2002 and that he created fictitious account statements and tax documents for the clients. Binnington worked for CIBC World Markets and its predecessor CIBC World Gundy Securities.

The IDA says Binnington paid back one of the clients $2 million, more than he had misappropriated, and compensated or undertook to compensate two other clients for losses in their accounts.

The IDA began its investigation after Binnington was dismissed for cause by CIBC World Markets on Jan. 28, 2003 for engaging in discretionary trading in several client accounts, providing personal funds to clients, and entering into a personal guarantee with a client.

“Mr. Binnington is permanently banned from approval by the association to act in any registered capacity with any Member of the Association and is fined $435,000,” the IDA said in a release. “In addition, Mr. Binnington is required to pay $10,000 towards the Association’s costs.”

According to reports, the case has been referred to the police.