PI Financial rep banned, fined $150,000

When his firm made inquiries regarding the source of the client’s deposits, Pan made misrepresentations, which hid the fact he was one of the sources.

a) Between October 2007 and November 2008, Pan loaned one client a total of $761,000 in nine advances without the consent of his firm, contrary to IDA By-law 29.1 and IIROC Dealer Member Rule 29.1;

b) Between April 2008 and June 2009, Pan failed to make diligent inquiries regarding the source or destination of funds being deposited to or withdrawn from the client’s account, contrary to IDA Regulation 1300.1(a) and IIROC Dealer Member Rule 1300.1(a);

c) In August 2008, contrary to IIROC Dealer Member Rule 29.1, Pan made a misrepresentation to his firm’s compliance staff about the source of funds deposited to the client’s account in order to conceal the fact that he had personally purchased and deposited a bank draft to the client’s account; and

d) In July 2009, contrary to IIROC Dealer Member Rule 29.1, Pan made a misrepresentation to his firm’s compliance staff when he responded to their questions about the source of funds deposited to the client’s account with a statement that concealed the fact that he was one of the sources funding the client’s account.

The panel imposed the following penalty on Pan:

a) A permanent ban from registration in any capacity with IIROC; and

b) An $150,000 fine.

Pan is also required to pay costs in the amount of $15,000.

IIROC formally initiated the investigation into Pan’s conduct in April 2010. The alleged violations occurred when he was a registered representative at the Vancouver, British Columbia Branch of PI Financial Corp, an IIROC-regulated firm.

Pan has not been registered in any capacity with an IIROC-regulated firm since October 2009.

Read the panel’s decision.