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Wealth Professional | 13 Jan 2015, 10:07 AM Agree 0
Not exactly CRM2-related, the OSC’s Joint Serious Offences Team looks to put the boots to a former Toronto resident who is alleged to have doctored financial statements for a client’s portfolio.
  • larry elford | 13 Jan 2015, 07:41 PM Agree 0
    The various ways that the investment industry can dupe, deceive and fool the public into a false sense of trust far exceeds that of a few bit players like Michael Lee Hughes. For example, when you (if you) get to the CSA registration search page, what you will NOT be told by any Canadian authority is that there MAY be a license or registration category for your financial person, but they will NOT be utilizing THEIR ACTUAL license or registration category with which to earn your trust. They will use a non-regulated title spelled "advisor", which according the Chris Besko, legal rep for the CSA, is a "title" and not a registration category. ("Adviser" is the legal classification for those who owe a specific protective duty of care to their customers)

    If you are confused, "welcome to my parlour….said the investment industry to the customer." His comments as well as an explanation of why and how deception and tricks like this are an industry standard practice are found here: http://www.investoradvocates.ca/viewtopic.php?f=1&t=193#p3775

    I am happy to follow up with more details to anyone who would like more information about how investment professionals deceive to defraud their customers of significant amounts of their rightful investment returns. Join me at Investment System Fraud on Facebook, or @RecoveredBroker on Twitter. Cheers.
  • WealthAdviser | 14 Jan 2015, 12:48 PM Agree 0
    The title of the article does not appear to match the content.

    Based on the title, I initially thought the article was about a financial advisor defrauding the public.

    I don't think he was.

    Perhaps to be a bit clearer, the article might have read: Charges laid against Alberta certified accountant.

    Even another poster in his comments assumed the article was about an advisor therefore using the term "advisor" in the headline is confusing to WP readers.

    It seems plain to me that the perpetrator that was charged was not a licensed financial advisor but a certified accountant (CMA) that was pretending to be an advisor.

    That is why he didn't turn up on the Canadian Securities Administration listing - wrong list! Likely, the perpetrator would not show up on the provincial securities regulator's list either.

    Perhaps the author of the original article could clarify further, but in re-reading the article, it seems to me that the unfortunate story is about someone, possibly an accountant, who defrauded the public by either impersonating a financial adviser or supplying investment services to the public while not being licensed to do so.
  • Will Ashworth | 15 Jan 2015, 03:19 PM Agree 0
    WealthAdviser.

    These are great comments.

    I used the term "advisor" because Hughes' website refers to segregated funds. That suggests he's providing investment advice in some form.

    In the end, I believe your last point is the most likely:
    it seems to me that the unfortunate story is about someone, possibly an accountant, who defrauded the public by either impersonating a financial adviser or supplying investment services to the public while not being licensed to do so.

    A national registry might not eliminate problems like this but at least it would recognize that if you give advice you must be licensed in one form or another.
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