IIROC bans, fines rep for litany of violations

The 2016 Hearing Panel found that Mr. Dirani committed the following violations:

(a) From April 2014 to January 2015, Mr. Dirani engaged in business conduct or practice which is unbecoming or detrimental to the public interest in that he misappropriated funds from clients, contrary to IIROC Rule 29.1;

(b) From August to December 2014, Mr. Dirani engaged in business conduct or practice which is unbecoming or detrimental to the public interest in that he executed unauthorized transactions in the accounts of clients, contrary to IIROC Rule 29.1;

(c) From July 2012 to May 2015, Mr. Dirani engaged in business conduct or practice which is unbecoming or detrimental to the public interest in that he engaged in personal financial dealings with clients, contrary to IIROC Rule 29.1; and

(d) From October to November 2015, Mr. Dirani failed to co-operate with an IIROC investigation by failing to attend a compelled interview, contrary to IIROC Rule 19.5.

The Hearing Panel imposed the following penalties on Mr. Dirani:

• A permanent ban on registration with IIROC

• A total fine of $266,000 consisting of a fine of $136,000 for misappropriation; $30,000 for unauthorized trading; $50,000 for personal financial dealings with clients; and $50,000 for failing to co-operate with an IIROC investigation.

Mr. Dirani is also required to pay costs in the amount of $12,000.

IIROC formally initiated the investigation into Mr. Dirani’s conduct in May 2015. The violations occurred while he was a Registered Representative with the Toronto branch of IPC Securities, an IIROC-regulated firm. Mr. Dirani is no longer a registrant with an IIROC-regulated firm.