Providing false information and using unapproved communications led to decision
A former registered representative of RBC Dominion Securities has been fined $100,000 and banned for five years by the Canadian Investment Regulatory Organization.
Andrew David Munro accepted a settlement agreement with CIRO Enforcement Staff who found that he has provided false portfolio information to two clients – one in their 60s and one in their 40s - and used an unapproved communication method.
In its decision notice, the regulator’s panel stated that Munro’s employment with RBC Dominion was terminated in 2022 when the misconduct came to light. He had been with the firm since 2015.
Munro managed high-net-worth individuals’ portfolios and was assisted by Sinziana Vornicu, who was fined $25,000 and banned for 12 months by CIRO in January. At the time, it was stated that Munro “initiated a scheme” to provide two of his high-net-worth clients with false portfolio values due to their dissatisfaction with their investment returns. This included directing Vornicu to review false values to ensure they were not repeated when new updates were sent.
CIRO’s decision to sanction Munro notes that the false account values were sent via emails and PowerPoint presentations, with discrepancies reaching millions of dollars. Although Vornicu sent most of the emails, this was determined to be under Munro’s direction.
The discrepancies between the false values and the actual portfolio values sent to Client 1 via email ranged from approximately $1.1 million to over $2.2 million; and for Client 2 discrepancies between the false values and the actual portfolio values, as recorded in the monthly portfolio statements, ranged from approximately $3.2 million to over $7.4 million.
Munro has expressed remorse for his actions and has no history of regulatory misconduct. As well as the fine and ban he must pay $5,000 in costs.
