Regulatory panel also hands over $100,000 in costs and fines in Vancouver misconduct case
The CIRO held a sanctions hearing on December 12, 2023, under the Mutual Fund Dealer Rules, involving Mohammad Movassaghi.
Following the hearing, Movassaghi was ordered to pay $45,000 in costs. The organization also imposed a $70,000 fine and issued a permanent prohibition against his involvement in securities-related business within CIRO-registered mutual fund dealers.
A prior decision on November 7, 2023, established that Movassaghi committed multiple regulatory breaches while operating in Vancouver, British Columbia.
The panel found he had falsified the signature of client X on nine account forms. He also instructed another Approved Person to submit three KYC Update Forms without client X’s knowledge or authorization.
Movassaghi failed to exercise due diligence to understand relevant facts about client X or maintain complete and accurate KYC information prior to executing trades.
The panel determined that Movassaghi processed or directed at least 180 trades in client X’s investment accounts without the client’s authorization.
He also created, or directed others to create, records of purported instructions from client X that were never received. Movassaghi further neglected to ensure the accuracy of these records.
In addition, he failed to disclose actual or potential conflicts of interest to the Member and disregarded conditions placed on his outside activities. These findings are outlined in Re Movassaghi 2023 CIRO 18.
The full reasons for the decision are outlined in Re Movassaghi 2024 CIRO 79.
