CIRO Sanctions Mohammad Movassaghi

Vancouver (British Columbia) – January 4, 2024 – Following a sanctions hearing held on December 12, 2023, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules imposed the following sanctions on Mohammad Movassaghi:

1. a fine of $70,000; and
2. a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member of CIRO registered as a mutual fund dealer.

Mohammad Movassaghi is also required to pay costs in the amount of $45,000.

In an earlier decision dated November 7, 2023, the hearing panel found that Mohammad Movassaghi:

1. between April 2015 and October 2015, falsified client X’s signature on 9 account forms; contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 2.5.1, and 1.1.2;
2. between April 8, 2015 and June 9, 2015, instructed another Approved Person to submit 3 KYC Update Forms to update records concerning the investment accounts of client X without the knowledge or authorization of client X and failed to exercise due diligence to learn the fact relative to client X or to maintain accurate and complete KYC information on file prior to client trades, contrary to the policies and procedures of the Member and MFDA Rules 2.2.1, 2.1.1, 2.5.1, 2.10, and 1.1.2;
3. between January 2015 and June 2016, processed or directed other Approved Persons or employees subject to his authority to process at least 180 trades in the investment accounts of client X without the knowledge or authorization of client X; contrary to the policies and procedures of the Member and MFDA Rules 2.3.1(a),^[1], 2.1.1, 2.10 and 1.1.2.
4. between January 2015 and June 2016:
   1. created or in some cases directed another Approved Person or other employees who worked in his office to create records of purported instructions received from client X which had not in fact been received (the “Records of Instructions”); or
   2. failed to exercise due diligence to ensure that the Records of Instructions accurately described instructions that had been received from client X;
      
      contrary to the policies and procedures of the Member and MFDA Rules 2.1.1, 5.1(b), 2.10, 2.5.1 and 1.1.2.; and
5. between January 2014 and August 2016, failed to disclose actual or potential conflicts of interest to the Member and failed to abide by the conditions of approval of his outside activities, contrary to the policies and procedures of the Member and MFDA Rules 1.2.1(c),^[2]1.4, 2.1.1, 2.5.1, 2.10 and 1.1.2.

The decision on Liability can be found at:

Re Movassaghi 2023 CIRO 18

The reasons for decision on sanctions of the hearing panel will be made available at www.ciro.ca.   

During the period described in the Notice of Hearing, Mohammad Movassaghi conducted business in the Vancouver, British Columbia area.

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All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website.

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.

CIRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

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[1] At the time of the misconduct hearing, the relevant part of MFDA Rule 2.3.1 (a) had been incorporated into MFDA Rule 2.3.1 (b).

[2] At the time of the misconduct hearing, MFDA Rule 1.2.1(c) had been incorporated into MFDA Rule 1.3.