A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has found that Harold Hee Jeen Ahn misappropriated client funds and failed to co-operate with an IIROC investigation.

In issuing its decision, the panel imposed a penalty against Ahn which included a $1 million fine, a permanent ban from registering with an IIROC-regulated firm and a $50,000 fine for non-cooperation. The panel also ordered Ahn to pay $7,000 in costs.

Specifically, the panel found that Ahn misappropriated $778,000 of client funds. In one case, he directed the client to sign cheques payable to himself, advising her that he would invest the funds on her behalf. He also provided that client with fictitious account documents. The hearing panel found that Ahn’s actions constituted conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1. The panel also found that he violated IIROC Rule 19.5 by not attending an IIROC interview and failing to cooperate with IIROC’s investigation.

“The respondent took advantage of an elderly, unsophisticated client who put her complete trust and faith in him …,” the panel noted. “Such conduct was egregious and convinces us that the respondent should not be permitted the opportunity to reoffend. A permanent ban is appropriate.”

The Rule 29.1 violations occurred between June and October 2010 when he was a Registered Representative with the Scarborough, Ontario branch of Edward Jones, an IIROC-regulated firm. IIROC began the investigation into Ahn’s conduct in October 2010. The Rule 19.5 violation occurred in December 2010 when Ahn was not registered with IIROC. Ahn is no longer a registrant with an IIROC-regulated firm.