IIROC dishes out ban and fine to one-time leadership candidate
A former IIROC-registered advisor and Alberta United Conservative Party (UCP) leadership candidate has admitted using clients’ money to fund his political campaign.
Jeffrey Callaway was fined $20,000 and given a three-month ban on any re-approval with IIROC, including six months close supervision upon any re-registration.
In an agreed settlement with the regulator, Callaway was found to have solicited or received funds from 15 clients totalling $24,900, which he then put towards his campaign. Most of the clients contributed $1,000 or more. He told the hearing that the 15 clients were also his friends and family.
He did not disclose the contributions to his member firm, Canaccord Genuity Corp., or get their permission to do so, contrary to the company’s policies and procedures. Canaccord fired him on August 15, 2019 for not disclosing the potential conflict of interest. Callaway is no longer an IIROC registrant.
In a 2019 CBC article, it was reported that Callaway was fined $70,000 for irregular campaign contributions during the 2017 campaign. This included a $15,000 penalty for colluding with Calgary businessman Robyn Lore in order to "circumvent a contribution limit”, according to details published on the provincial election commissioner's website.
Callaway has long been accused of running a so-called "kamikaze" campaign on behalf of Jason Kenney, now Alberta's premier but who recently announced he is stepping down. Callaway ran for the sole purpose of targeting Kenney's chief rival, former Wildrose leader Brian Jean, before dropping out of the race to support Kenney. Kenney eventually won the UCP leadership after the Alberta Progressive Conservative and Wildrose parties merged.