OPP and CIRO allege ex-Quadrus adviser misused client funds and issued falsified investment documents
Kevin Douse, a former Orillia-based financial adviser, allegedly misappropriated more than $1.8m from clients over several years, according to the Ontario Provincial Police (OPP) and the Canadian Investment Regulatory Organization (CIRO).
The OPP arrested Douse in April, charging him with 11 counts of uttering forged documents and one count of defrauding the public, as reported by Orillia Matters and CTV News.
According to CIRO’s Notice of Hearing and Statement of Allegations dated May 9, Douse misappropriated approximately $277,173 from five clients and two individuals between 2018 and 2020 while registered with Quadrus Investment Services Ltd.
CIRO further alleges Douse failed to cooperate with its investigation starting in September 2024.
CTV News reported that multiple individuals claim they trusted Douse with their retirement savings and now face financial distress.
One former client stated they were left with no choice but to work two jobs.
Another said, “Not only losing my financial security but also losing somebody who I valued as a friend. It’s truly been horrible.”
As per CIRO’s allegations, Douse directed clients to write investment cheques payable to him personally and deposited the funds into his own bank accounts.
The regulator also claims he created fabricated account statements and portfolio summaries to suggest clients held investments that did not exist.
Court documents cited by CTV News show Douse is named in at least eight civil lawsuits alongside WLTH Inc., a now-defunct firm where he previously worked.
The alleged conduct occurred between 2016 and late 2023.
According to Orillia Matters, Douse was not present at his initial court appearance, which has been adjourned to September 2, 2025.
Two individuals who identified as victims attended the hearing but declined to speak publicly.
CIRO’s disciplinary hearing is scheduled for July 2, by videoconference.
The panel may issue penalties including fines up to $5m per offence, suspensions, permanent bans, or cost orders under Mutual Fund Dealer Rule 7.4.1.1.
Detective Constable Russ Rogan of the Orillia OPP Crime Unit emphasized vigilance. “It is essential to confirm that your investment funds are being directed into the products you intended,” he stated in a release cited by Wealth Professional.
He also recommended that those unfamiliar with online accounts seek help from trusted individuals and always retain full documentation.
