Meehan used personal wallets for thousands of off-book crypto trades, CIRO records show
The Canadian Investment Regulatory Organization (CIRO) approved a settlement agreement on April 28, against Christopher Leslie Meehan following a hearing held under the Mutual Fund Dealer Rules.
CIRO released its reasons for decision on May 27, confirming that Meehan engaged in securities related business outside the facilities of his Dealer Member, Assante Financial Management Ltd.
Wealth Professional reported that Meehan entered into agreements between October 2019 and July 2022 with 30 individuals—including eight Assante clients—to purchase, sell, or transfer crypto assets on their behalf.
The transactions were neither approved nor processed through Assante.
CIRO found that Meehan received approximately $1.23m in cryptocurrency from the investors, which he deposited into personal digital wallets and used to execute more than 6,000 trades in at least 75 cryptocurrencies.
The contracts with investors included a 20 percent commission on profits exceeding double the initial investment.
Meehan earned approximately US$91,241 in crypto-based commissions, including US$12,261 from four Assante clients. The trades were conducted without Assante’s knowledge or approval.
CIRO records state that in December 2017, Meehan had requested approval from Assante to operate a cryptocurrency mining business from his residence.
Assante denied the request in January 2018 and warned that crypto-related activities might fall under securities law, referencing applicable MFDA rules and a Canadian Securities Administrators notice.
Despite this, Meehan entered into direct contracts with clients and investors and in March 2021 incorporated a numbered company, listing his spouse as the sole officer and director.
He had the investors re-sign the contracts under the new company name.
The company was never disclosed to Assante.
In May 2022, the British Columbia Securities Commission issued a cease trade order against the numbered company, stating that the contracts constituted securities under the Securities Act and required a prospectus or exemption.
CIRO confirmed that following this order, Meehan returned all cryptocurrency funds and commissions to investors voluntarily. There were no complaints filed by any of the investors with Assante or CIRO.
Meehan admitted to contraventions of MFDA Rules 1.1.1(a) and 2.1.4, now incorporated into the Mutual Fund Dealer Rules.
As part of the settlement, Meehan agreed to a four-month suspension from conducting securities related business with any Dealer Member of CIRO registered as a mutual fund dealer.
He also agreed to pay a $45,000 fine and $5,000 in costs and committed to comply with the relevant rules in the future.
Mitigating factors acknowledged by CIRO included the voluntary return of funds, the absence of client complaints, and Meehan’s previously clean disciplinary record.
Assante had already imposed its own internal penalties: a $15,000 fine, mandatory completion of the Conduct and Practices Handbook course, and a period of close supervision.
Meehan remains registered with Assante and continues to operate in Abbotsford, British Columbia.
