A former mutual fund representative has been fined and permanently banned after a hearing panel found he violated several rules of the Canadian Investment Regulatory Organization (CIRO).
Following a hearing, the self-regulatory organization (SRO) ordered Mohammad Movassaghi, a former rep with Investors Group Financial Services Inc. in Vancouver, to be fined $70,000 and to pay $45,000 in costs. It also permanently banned him.
The sanctions follow an earlier ruling from the panel, which found that, between 2015 and 2016, he falsified a client’s signature on numerous account forms, updated her know-your-client forms without her knowledge, and processed at least 180 trades in her account without authorization, among other things.
According to the SRO, in 2017 the client was compensated over $22,000 by the firm for losses that she suffered as a result of these actions.
The misconduct involved a client who began as a tenant in a property owned by Movassaghi in 2013.
According to the panel’s earlier decision, while Movassaghi had permission from his firm to act as a landlord, he was required to seek approval before opening any accounts for his tenants.
“He did not disclose or obtain approval from [his dealer] to open investment accounts … for his tenant,” it said, noting that this gave rise to a potential conflict of interest.
The misconduct was discovered when Movassaghi switched firms, and the client’s account was transferred to his new firm without her permission.
In 2022, Movassaghi was fined $100,000 and ordered to pay $60,000 in costs, and banned from the industry by CIRO predecessor the Investment Industry Regulatory Organization of Canada after a hearing panel found he falsified client signatures in connection with his move to a new firm, and that he misled SRO staff.