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Quadrus Investment fined $40K, but Halifax victims feel silenced

Nova Scotia Securities Commission fines salesman Glenn Dunbar $350K

A Nova Scotia couple who lost much of their life savings to a financial advisor is speaking out about the treatment they have received from the Nova Scotia Securities Commission.

Roberta and John Hancock — who works for the CBC — recently settled with Quadrus Investment Services after the couple lost their pension savings and home after they trusted financial advisor Glenn Dunbar.

Roberta Hancock says the couple complained to the Nova Scotia Securities Commission, the industry regulator.

"Then we never heard from them again for two and a half years," she said Thursday.

"At one point two years ago, I tried to phone them and they didn't return my call. They sent their lawyer to our lawyer, saying tell her not to call anymore."

She says they didn't know if they had been forgotten, or if the case was even being investigated. In those two years, they lost their home, fought off bankruptcy and put off retirement plans.

This week, the commission fined Quadrus $40,000, plus $1,000 to cover the proceedings.

"The respondents violated Nova Scotia securities laws by failing to properly supervise one of its mutual fund representatives, and by failing to ensure the recommended investment strategy was suitable for the client," the commission said.

The Hancocks' lawyer heard from the commission lawyer Wednesday and "explained to him that the rules and regulations governing the commission do not allow victims a role, other than the initial interview," Roberta Hancock said.

That meant they were cut out of the process until shortly before the settlement hearing, Hancock said. They wanted to speak at the hearing, but understood they could not. Much of the hearing was held behind closed doors.

"I think they really need to think long and hard about how they treat victims," she said. "It was like it wasn't even about us."

Victim interviews 'weighs heavily' on commission

Heidi Schedler of the Nova Scotia Securities Commission agreed victims play little part in the proceedings and don't usually get to address the commission.

"It's absolutely true that there's nothing formal in place that permits it, but it has happened," she said.

"We're always considering what the victims have told us. It weighs heavily on how we move through our files and how we consider how to go forward with files."

The commission does sometimes invite people to speak to them at the hearing as they decide on the penalty. She didn't say why that didn't happen in the Hancocks' case.

Schedler said Quadrus Investment Services' actions were serious, but wouldn't lead to the company losing the right to do business in Nova Scotia.

"It's reserved for the most significant of offences," she said.

"It would have to be extremely egregious, probably fraudulent, and perhaps even potential criminal."

She acknowledged that Quadrus has been fined before for similar issues. It was fined $40,000 by the commission in 2013 for failing to properly supervise another of its employees, Grant Stuart Rust.

Schedler is hopeful they won't do it again.

"Generally speaking, it does work. Firms who have been penalized … as a result of their conduct will learn from that and not do it again," she said.