TORONTO, June 26, 2024 /CNW/ - A sanctions hearing has been scheduled before a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules in the matter of Zahir Hussain Lehri.
The hearing panel will consider the sanctions to be imposed as a result of its decision dated June 7, 2024, in which Zahir Lehri was found to have:
1) allowed an Approved Person who was not registered with the Member to:
a. open new accounts at the Member for clients;
b. complete and submit for processing Know-Your-Client forms;
c. implement a leveraging strategy for these clients using false or inaccurate client financial documentation; and
d. process trades in the accounts of these clients using the Respondent's representative code;
thereby:
a. facilitating stealth advising by the other Approved Person, and
b. failing to use due diligence to learn the essential facts relative to the clients and to ensure that the leveraging strategy and investments that were recommended and implemented for clients were suitable.
2) misappropriated or failed to account for monies received from a client and another individual, and
3) failed to cooperate with an investigation into his conduct by Staff of the MFDA.
The hearing panel's liability decision is available at:
The sanctions hearing is open to the public, unless the hearing panel orders otherwise. The decision of the hearing panel will be made available at www.ciro.ca.
Hearing Date: August 30, 2024 at 10:00 am (Eastern Time)
Location: Toronto, Ontario via videoconference
Members of the public who would like to obtain further particulars should fill out this questionnaire.
During the period described in the Notice of Hearing, Zahir Lehri conducted business in the Brampton, Ontario area.
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.
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 investment firms is available free of charge through the AdvisorReport service. Information on how to make 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.
SOURCE Canadian Investment Regulatory Organization (CIRO)
Joanna Nicholson, Manager, Corporate Communications and Public Affairs, [email protected], Phone: 416-943-4640
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