A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed stiff penalties on a Victoria woman previously found liable for various securities violations.
Carolann Steinhoff was a registered representative with Wellington West Capital Inc. in 2008 when she was found to have acted contrary to IIROC rules. According to the panel, her actions included making discretionary purchases in a client’s account, unsuitable use of margin and unsuitable investments for clients.
The panel also found that when her firm’s compliance department questioned her about the purchases, Steinhoff told them that the topic of margin was raised by the client, when she knew that was a false statement.
IIROC has imposed the following sanctions and penalties:
- a 12-month suspension from registration;
- after the expiration of her suspension, a condition that her future re-registration be subject to strict supervision for a period of 12 months and to close supervision for a further 12 months for a total period of 24 months supervision;
- a $100,000 fine;
- disgorgement of commissions of $6,813; and
- a five-year prohibition from serving as a director or officer of a member firm.
Steinhoff is also required to pay $20,000 in costs and is ineligible for reinstatement until she has paid the fine, disgorgement and costs and passed both the Partners Directors and Officers Course and the Branch Managers Course.
On July 10, Steinhoff requested that the British Columbia Securities Commission (BCSC) conduct a hearing and review of both the liability and penalty decisions.
On July 12, the BCSC ordered a stay of the sanctions imposed against Steinhoff pending its hearing and review of this matter.
She is currently registered in Victoria with Queensbury Securities Inc., an IIROC-regulated firm.
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