Regulator finds investment advisor Joan McCarthy liable for taking clients' cash

·1 min read
The Investment Industry Regulatory Organization of Canada has found Joan McCarthy liable for falsifying signatures and appropriating funds from her clients’ accounts. IIROC is the national self-regulatory organization that oversees all investment dealers in the country. (Brent Lewin/Bloomberg - image credit)
The Investment Industry Regulatory Organization of Canada has found Joan McCarthy liable for falsifying signatures and appropriating funds from her clients’ accounts. IIROC is the national self-regulatory organization that oversees all investment dealers in the country. (Brent Lewin/Bloomberg - image credit)

An industry regulator has found a former Newfoundland investment advisor liable for falsifying signatures and appropriating funds from her clients' accounts.

Joan McCarthy also failed to co-operate with the investigation by the Investment Industry Regulatory Organization of Canada.

She refused to provide documents or speak with the regulator's enforcement staff.

IIROC announced the decision Thursday. A hearing was held on the matter in late October but McCarthy didn't show up.

The violations occurred between 2006 and 2019, while McCarthy worked with the St. John's branch of MD Management Ltd. She is no longer registered with an IIROC-regulated firm.

The hearing panel's reasons for the decision, and details of any sanctions, have not yet been released.

McCarthy had been accused of steering $775,000 from the accounts of six elderly clients to her personal bank account over a 13-year period.

Last month, legislation was introduced in the provincial House of Assembly to bolster IIROC's abilities to investigate and sanction investment advisors who break the rules.

Newfoundland and Labrador has lagged behind the rest of the country, in terms of the amount of legislative bite provided to the watchdog.

Bill 16 got broad support from both sides of the legislature at second reading, but has not yet passed.

McCarthy is also facing two dozen criminal charges related to fraud and forgery.

Her case was called at provincial court in St. John's last week. She has yet to enter a plea. The matter was set over to early January.

Read more from CBC Newfoundland and Labrador

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting