An advisor has been penalized for unauthorized actions involving client accounts, leading to a suspension and significant financial penalties
On September 13, a Canadian Investment Regulatory Organization (CIRO) panel sanctioned Sabrina Antonia Baggs.
Baggs admitted to setting up and cancelling pre-authorized contributions (PACs) in client accounts without authorization.
This misconduct occurred between November 2019 and February 2020, with the intention of meeting sales targets and boosting her compensation based on the Dealer Member's sales incentives.
CIRO’s findings revealed that Baggs established and cancelled 51 PACs for 40 clients without their knowledge.
In all instances, the PACs were cancelled before any contributions were made, yet the transactions falsely generated sales revenue that contributed to her bonus calculations from 2019 through 2022.
CIRO noted that there was no evidence of client financial loss, and no complaints were filed against Baggs by clients or the Dealer Member.
As part of the settlement, Baggs agreed to a 12-month prohibition from conducting securities-related business and a $20,000 fine.
She was also ordered to pay $5,000 in costs. The settlement, which avoided a contested hearing, was accepted by a CIRO panel.
