A hearing panel of the Investment Dealers Association of Canada has fined and suspended an Ontario broker for the unauthorized transfer of funds between client accounts.

On Dec. 12, 2006, the hearing panel accepted a settlement agreement negotiated between IDA staff and Anthony Zarkadoulas, at all material times a registered representative with the Thornhill branch of CIBC Investor Services Inc.

Zarkadoulas admitted that during the period of September to October 2005, he caused to be transferred, without authorization, certain funds from the account of one client to cover the losses in another client’s account. Zarkadoulas received no direct financial benefit and the initial client was reimbursed for the transferred funds.

During the period of March to April 2006, Zarkadoulas provided inaccurate, false or misleading information to the IDA regarding the circumstances of his termination of employment.

The panel fined Zarkadoulas $50,000 and ordered him to pay $16,600 in costs. The panel also prohibited him from re-approval by the IDA in any capacity for a period of five years from the date of acceptance of the settlement agreement.

Zarkadoulas is currently not registered with an IDA member firm.

For a complete summary of facts, please see IDA Bulletin 3596.