Rep fined $40,000 for forged letter

On March 9, 2012, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement between the IIROC staff and the Paul James Vorstadt.

Vorstadt admitted that he forged a letter, which misrepresented the features of an investment product he had recommended to a client.

Specifically, Vorstadt admitted to the following violation:

In or around March 2009, Vorstadt fabricated a letter purportedly from Manulife Financial Corp. in which he misrepresented the guarantee features of an investment product he had recommended to a client. He then printed the letter on Manulife letterhead and forged the signature of a Manulife employee, contrary to Dealer Member Rule 29.1.

Pursuant to the settlement agreement, Vorstadt agreed to the following penalty:

a) A fine in the amount of $40,000; and

b) A prohibition from seeking approval in any capacity until October 5, 2012.

Vorstadt also agreed to pay costs in the amount of $5,000.

IIROC formally initiated the investigation into Vorstadt’s conduct in October 2011. The conduct occurred when he was a registered representative with the Markham, Ontario branch of TD Waterhouse Canada Inc.

Staff

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