A fund broker operating out of Vancouver, British Columbia has been barred from the industry for five years and fined $5,000 (Can.) after he stole $655 (Can.) from a client.
The B.C. Securities Commission, which leveled the penalty, also ordered the salesman, Randall Kane Garrod of PFSL Investments Canada, to pay costs associated with his prosecution by the government regulatory group.
During a hearing on the matter, BCSC staff members said Mackenzie Financial Corp. sent a $655 mutual fund distribution check to one of Garrods clients, but the check was returned to Mackenzie in January of 1999 because the client had moved to a new address. Mackenzie then sent the check to Garrod, according to a BCSC statement, so that Garrod could forward it to the client. Instead, the broker deposited the check in his own account and later withdrew all of the funds. The malfeasance was discovered after the client tried to track down the check and discovered it had been cashed.
Criminal charges were filed against Garrod last June. He pleaded guilty to one count of theft under $5,000 and was later sentenced to 30 days in jail and 90 days of probation. He was also ordered to return the money to the client.