Following a disciplinary hearing held on Wednesday, May 23, 2012, in Manitoba, a hearing panel of the Investment Industry Regulatory Organization of Canada found that Douglas Michael Warkentin liable of falsifying a personal account statement from CIBC Wood Gundy.
He submitted the document to his firm, Wellington West Capital, as part of a leverage loan account application, and was also found liable for making misleading statements to his employer.
Specifically, in the agreed statement of facts, he admitted the following violations:
(a) In January 2011, Warkentin created a falsified document, which he submitted to his employer with the intention the document be acted upon as genuine, contrary to Dealer Member Rule 29.1;
(b) In January 2011, Warkentin made misleading statements to his employer, contrary to Dealer Member Rule 29.1.
The Hearing Panel imposed the following penalty on Warkentin:
(a) A $25,000 fine;
(b) A period of suspension from registration in any category with IIROC for 6 months effective February 1, 2012; and
(c) Successful completion of the Conduct and Practices Handbook examination upon registration with IIROC.
He’s required to pay costs in the amount of $5,000.
Read: Leveraging is risky for clients: IIROC
IIROC formally initiated the investigation into Warkentin’s conduct in May 2011. The alleged violations occurred when he was a registered representative with a Winnipeg branch of Wellington West Capital Inc., an IIROC-regulated firm. He’s not currently a registrant with an IIROC-regulated firm.