RMFI, a subsidiary of RBC, has offered compensation but daughters say case highlights inadequate protection for seniors
A 90-year-old client was allegedly the victim of fraud by her long-time Royal Mutual Funds Inc financial advisor that resulted in the loss of more than $120,000, according to a Global News report.
The accusations, made by her daughter Janet Yu, detailed how Jeong (Abraham) Shin, who had been her trusted advisor for the more than a decade, stole $60,000 and also processed an unauthorized transfer of funds. These were confirmed by an internal investigation by RMFI, a mutual funds dealer and RBC subsidiary.
The client, who wished to remain anonymous, decided not to press charges.
Global News reported that RMFI compensated Yu’s mother for $60,000 the advisor allegedly stole from her accounts, plus more than $7,000 in lost investment growth for that amount. The fund dealer has also offered more than $52,000 as additional compensation to account for other lost investment growth tied to the alleged second unauthorized transaction.
“We take seriously any allegation of employee misconduct and are investigating this matter fully,” an RBC spokesperson told the news outlet via email. “We can confirm that full monetary compensation has been offered to the client. Beyond that, we are unable to comment further due to employee privacy and because the matter is still under investigation.
“We understand that any time a client is affected by unauthorized transactions that it can be a difficult situation for them.”
Yu, and her sister Donnah Koh, said the handling of the case has been inadequate and that it raises shortcomings in a major financial institution’s ability to protect a vulnerable senior from fraud.
