A former mutual fund dealer ignored seven staff requests before the panel handed down its penalty
A former HSBC mutual fund representative has been permanently barred from the Canadian securities industry and fined $50,000 after a regulatory panel found he refused to cooperate with an investigation into cryptocurrency dealings involving a friend's money.
A hearing panel of the Canadian Investment Regulatory Organization (CIRO) reached that finding on July 21, ruling that Debojyoti Majumder, also known as Debo Majumder, breached Mutual Fund Dealer Rule 6.2.1 by failing to cooperate with enforcement staff.
Alongside the permanent prohibition and the fine, the panel ordered Majumder to pay $25,000 in costs.
CIRO said the reasons for decision will be posted to its website once available.
Majumder committed the misconduct while registered as a dealing representative in the Richmond Hill, Ontario, area with HSBC Investment Funds (Canada) Inc.
He held registration in British Columbia from May 2019 to February 2022 and in Ontario until August 2023, and he is not currently registered in the securities industry in any capacity.
The investigation traced back to cryptocurrency trading that Majumder began in 2017, before he entered the securities industry, the statement of allegations shows.
Enforcement staff alleged he invested jointly with or on behalf of a friend, identified only as DK, accepting roughly $20,000 and holding sole access to the trading account.
Majumder paid DK about $2,000 as a return in 2018 and told him the remainder stayed invested, staff said.
The arrangement continued after he registered with the dealer in May 2019.
Between March and September 2020, Majumder accepted a further $20,000 to $25,000 from DK for the trading, as per the allegations.
When DK asked to cash out around April 2021, Majumder said he was unable or unwilling to do so but agreed to repay roughly US$60,000 at a later date, staff alleged.
He never disclosed the trading to HSBC or sought approval to conduct it as an outside activity.
The dispute moved to court in August 2022, when DK filed a $50,000 civil claim over money Majumder owed him.
Majumder did not respond to or defend the claim and DK won default judgment for that amount the following month, the allegations state.
Majumder also failed to report the claim to his firm, and DK complained to HSBC in September 2022.
Majumder resigned on August 18, 2023.
HSBC reported the matter to CIRO in April 2023, prompting the investigation.
Enforcement staff made at least four written requests between August and December 2023 for Majumder to respond to the allegations, followed by at least three more between April 2024 and May 2025 asking him to attend an interview, according to the statement of allegations.
He answered none of them.
That silence left staff unable to determine the full nature and extent of his conduct, CIRO said, including what he did with DK's money, whether his dealings amounted to securities-related business outside the firm, and whether he had engaged in similar conduct with others.
