After initially trying to satisfy the margin call with his personal finances, he resorted to creating false bank accounts for two senior clients without their knowledge, which he used to funnel money away from their TFSA and non-registered accounts.
He also borrowed a total of $200,000 from two other clients, giving rise to a potential conflict of interest that he did not disclose to his employer firm.
The settlement agreement also described how on or around March 23, 2020, he processed a switch of $330,081 in a client’s investment account, moving her from a conservative portfolio fund to a money market fund.
He had recommended that she switch her investment to reduce volatility in her portfolio, which the client said she’d think about. Because of the unauthorized transaction, the client lost a total of $52,450.54 in gains she would have experienced had she stayed in the conservative portfolio fund.
Aside from the permanent prohibition, Shin is to pay a $50,000 fine and $5,000 in costs.
