A hearing panel of the Investment Dealers Association of Canada has found Johanne Pinet, at all material times an approved person at the Laval, Quebec branch of National Bank Financial Inc., guilty of misappropriation of funds.

In a written decision dated July 6, 2007, the panel ruled that, between Oct. 18, 2005, and Nov. 18, 2005, Pinet had misappropriated funds from her half-brother, a client of National Bank Financial Inc., in the amount of $1,120, via eight withdrawals.

In determining penalty, the panel took into account the evidence that Pinet never had any intention of not returning the money, which she used to pay outstanding personal debts, as she eventually deposited the money into the half-brother’s account before anyone asked her to.

Pinet had no disciplinary history and cooperated fully with the IDA investigator, to whom she admitted all of the facts.

The panel took into consideration the fact that Pinet lost her job as a result of this violation, which led to the loss of her house. Considering that her income was minimal, imposing a hefty fine on her would be equivalent to imposing a permanent bar from approval, the panel said.

However, the panel observed that “the misconduct was in fact serious and that the simple fact of wilfully transferring a sum — no matter how small — from the account of a third party to one’s own account, without that person’s consent, constitutes a misappropriation of funds.”

Pinet has been suspended from approval for a period of one year from the effective date of the decision and must pay $4,000 in costs within 24 months.

Pinet has not been registered with an IDA firm since December 2005.

For a complete summary of facts, please see IDA Bulletin 3667.