Investors faced losses after Advantagewon collapsed and payments on promissory notes stopped in 2021
The Canadian Investment Regulatory Organization (CIRO) hearing panel accepted a settlement agreement with sanctions involving Henry Griffioen on March 17.
Griffioen is a former dealing representative with Quadrus Investment Services Ltd., and the agreement was reached with CIRO enforcement staff.
Griffioen admitted to engaging in securities related business outside the Dealer Member by facilitating the sale of promissory notes to clients and another individual.
He also admitted to creating false notes on an account form and in the Dealer Member’s system.
According to the settlement agreement, between November 2017 and September 2020, Griffioen facilitated the sale of approximately $1.16m in promissory notes to at least six clients and one individual.
These sales were not carried out for the account or through the facilities of the Dealer Member.
Griffioen also personally invested $600,000 in Advantagewon Capital Corp., the company involved in the promissory notes.
CIRO enforcement staff stated that Advantagewon, incorporated by an acquaintance of Griffioen, provided loans to individuals for car-related expenses.
The investors believed they were investing directly in Advantagewon, although the notes were issued through another company, Palify Lending.
The investors later suffered financial losses after payments ceased in December 2021 and Advantagewon entered receivership in January 2021.
Griffioen facilitated the investments by discussing terms, providing promotional materials, and handling paperwork.
Some clients redeemed mutual fund holdings to fund the purchases, and Griffioen processed these transactions without disclosing the true purpose.
In one case, he recorded that the funds were for home renovations, and in another, for travel.
He also disclosed an outside activity in September 2019 involving a company called Won Company, representing to Quadrus that it was only an investment with no control or decision-making influence. Quadrus approved the activity based on this information.
Pursuant to the terms of the settlement, Griffioen agreed to a $75,000 fine and to pay $5,000 in costs.
He is permanently prohibited from conducting securities related business in any capacity while employed by or associated with any CIRO Dealer Member.
Griffioen is not currently registered in the securities industry.
