Nearly $6 million misappropriated from five clients before CIRO issued a permanent industry ban
Canadian Investment Regulatory Organization (CIRO) has issued its reasons for decision on April 29, following a settlement hearing held on March 25, confirming sanctions against Michael Rowland Tomkins.
The hearing panel accepted a joint settlement agreement between CIRO Enforcement Staff and Tomkins.
The panel found that Tomkins engaged in conduct “unbecoming or detrimental to the public interest” by misappropriating client funds.
Tomkins, a former registered representative with Assante Capital Management Ltd. in Nanaimo, British Columbia, misappropriated approximately $5,996,992.21 from five clients between 2007 and July 2023.
CIRO limited its findings to the period between February 2019 and July 2023, during which Tomkins misappropriated $1,688,500.
He returned $418,103.50 to one of the two affected clients, both of whom were elderly and had health concerns. The remaining $1,270,396.50 was used for his personal benefit.
To obtain the funds, Tomkins used cheques, bank drafts, and electronic transfers, fabricating investment vehicles, portfolio summary reports, and transactions.
He deceived both the clients and his employer, Assante, to avoid detection.
According to the reasons for decision, his actions showed an “ongoing pattern of intentional deception.”
The misconduct came to light in October 2023, after one client advised they would be moving their investments. Tomkins resigned voluntarily from Assante later that month.
In November 2023, he submitted a letter to CIRO admitting to misappropriating client funds.
In a sworn interview with CIRO staff on September 18 and 19, 2024, Tomkins admitted that he used all misappropriated funds for personal use.
CIRO permanently prohibited Tomkins from seeking approval in any capacity and from employment with any CIRO-regulated firm.
He is also required to pay a $1,000,000 fine, disgorgement of $1,270,396.50, and $10,000 in costs, to be paid within 30 days of the settlement’s acceptance.
At the hearing, CIRO’s Enforcement Counsel confirmed that no further action would be taken unless Tomkins fails to comply with the settlement terms.
Legal proceedings initiated by one client against Tomkins and Assante remain ongoing.
The CIRO hearing panel concluded that the penalties were consistent with prior decisions, fair under the circumstances, and served as an adequate deterrent.
