47 replies to this topic

[Holden West]

Latest on the hearing
By David Baines, Vancouver Sun
November 28, 2009

I dropped in Wednesday while Paul Smith, enforcement counsel for the Investment Industry Regulatory Organization of Canada, questioned her about two e-mails she sent to her assistants on March 13 and 14, 2007, instructing them to cut and paste new dates on an old client guarantee. I found it painful to watch.

When she was initially interviewed by IIROC investigators, Steinhoff was very definite about what she was doing on those fateful days. She insisted she never instructed her assistants to alter documents, and the two e-mails were meant as comic relief from the frustration of meeting the demands of the compliance officers at Wellington West Capital, where they worked.

But when she was confronted with inconsistent and contradictory information in subsequent interviews, and later at the hearing, Steinhoff's responses became vague and meandering, if not evasive.

I think Steinhoff herself is beginning to realize she has a serious problem on her hands. That problem will become even more serious if the panel decides she tried to frustrate the IIROC investigation by writing a false date on a courier slip (to give the impression she was attempting to obtain a real guarantee, rather than re-engineer an old one), and by counselling her assistant, Bonnie Reside, to give "evasive or misleading statements" to investigators.

[Holden West]

Update: "...the decision is now before an independent review panel"

Read more: http://www.timescolo...l#ixzz0gqt7IWxV

[martini]

Victoria broker Carolann Steinhoff found guilty of instructing staff to alter client document, then lying
Times Colonist March 10, 2010
http://www.timescolo...l#ixzz0hoaY4huO

Victoria stockbroker Carolann Steinhoff has been found guilty of instructing staff to alter a client document then trying to cover her tracks when questioned about the fabrication.

A panel of the group that oversees Canadian stockbrokers - the Investment Industry Regulatory Organization of Canada - released its decision Tuesday.

Steinhoff was found guilty of three counts of contravention of the Investment Dealers Association of Canada's bylaws.[...]

[Bob Fugger]

Victoria broker Carolann Steinhoff found guilty of instructing staff to alter client document, then lying
Times Colonist March 10, 2010
http://www.timescolo...l#ixzz0hoaY4huO

Victoria stockbroker Carolann Steinhoff has been found guilty of instructing staff to alter a client document then trying to cover her tracks when questioned about the fabrication.

A panel of the group that oversees Canadian stockbrokers - the Investment Industry Regulatory Organization of Canada - released its decision Tuesday.

Steinhoff was found guilty of three counts of contravention of the Investment Dealers Association of Canada's bylaws.[...]

It appears the ol' "You know I'm kidding, right?" after-the-fact defence wasn't as effective as Carolann had hoped.

[Guy]

This lady obviously has no morals or ethics. She breaks the law and then tries to cover up her tracks. The arrogance is obvious from her testimony. They should impose the stiffest penalty the law will allow. However, I doubt this will make any changes to her future behaviour. Once a snake, always a snake.

[Holden West]

IN THE MATTER OF Carolann Steinhoff – Penalty

April 28, 2010 (Vancouver, BC) – Notice is hereby given that a hearing will be held
before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC),
on Thursday, May 13, 2010, at Reportex Agencies Ltd., located at 925 West Georgia Street,
Suite 2010, Vancouver, British Columbia, at 10:00 a.m. or as soon thereafter as possible, to
determine the penalty to be imposed in the matter of Carolann Steinhoff (the Respondent).
The proposed hearing concerns matters for which the Respondent will be disciplined as an
Approved Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.
The penalty imposed will pertain to findings that the Respondent:

1. From approximately January 2004 until approximately March 17, 2007, engaged in
business conduct or practice that was unbecoming or detrimental to the public interest
contrary to Dealer Member Rule 29.1, by encouraging, instructing, or condoning the use
of a cut and paste procedure whereby her assistants created fake documents and faxed
them to her firm’s head office as properly executed documents;

2. On March 13, 2007, and March 14, 2007, engaged in business conduct or practice that
was unbecoming or detrimental to the public interest contrary to Dealer Member Rule
29.1 in that she directly instructed two different assistants to create a false client
Guarantee and fax it to her firm’s head office as a properly executed document by:

(a) changing the date on an approximately 3-year-old Guarantee and inserting a new
date without having the client sign it; and

(b) cutting out the client signature from another docum
ent already on file and pasting
it on to a new Guarantee and then photocopying and faxing it; and
3. From approximately March 2007 to October 2008 engaged in business conduct or
practice that was unbecoming or detrimental to the public interest contrary to Dealer Member
Rule 29.1 in that she attempted to frustrate or obstruct separate investigations
being conducted by her firm and by IIROC into the subject matter of Counts 1 and 2 by:

(a) providing answers that were not true or complete with respect to her actions
and intentions relating to those Counts;

(b) altering a courier delivery receipt so as to support a version of the facts that
she had previously given and presenting it in its altered version to IIROC
investigators; and

© suborning her assistant Bonnie Reside to make evasive or misleading
statements to her firm and IIROC that were favourable to the Respondent
and consistent with the story she had told them.

IIROC formally initiated the investigation into the Respondent’s conduct on July 3, 2007. The
violations occurred when the Respondent was a Registered Representative (RR) with the 240-
730 View Street Branch of Wellington West Capital Inc. in Victoria, British Columbia. The
Respondent is currently an RR with the 340A-730 View Street, Victoria, British Columbia sub-
branch of Queensbury Securities Inc., an IIROC-regulated firm.

The hearing is open to the public, unless the Hearing Panel orders otherwise. The Hearing
Panel’s decision and reasons will be made available to the public.

IIROC is the national self-regulatory organization which oversees all investment dealers and
trading activity on debt and equity marketplaces in Canada. Created in 2008 through the
consolidation of the Investment Dealers Association of Canada and Market Regulation Services
Inc., IIROC sets high quality regulatory and investment industry standards, protects investors
and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding
the proficiency, business and financial conduct of dealer firms and their registered employees
and through setting and enforcing market integrity rules regarding trading activity on
Canadian equity marketplaces.

For further information, please contact:
Warren Funt
Vice President, Western Canada
604.331.4750
wfunt@iiroc.ca
Jeff Kehoe
Acting Vice President, Enforcement
416.943.6996
jkehoe@iiroc.ca
-30-

[Rob Randall]

Victoria broker slapped with fines, suspension

By Robert Randall • Published on Tuesday, September 21, 2010 • Categorized as Business & the Local Economy, Local News

Following a three-year investigation, Victoria investment advisor Carolann Steinhoff was penalized today for what regulatory investigators called “various forms of dishonesty and deception”.

The Decision on Sanctions, released today by the Investment Industry Regulatory Organization of Canada, laid out a series of substantial penalties but falls short of the punishment regulators hoped would be pinned to the high-profile broker.

[Rob Randall]

Correction:

Note: This article corrects an earlier version that said Steinhoff's current employer was Wellington Securities. Steinhoff was previously employed at Wellington West Capital. Her current employer is Queensbury Securities. We regret the error and any confusion caused.

[Phil McAvity]

This lady obviously has no morals or ethics. She breaks the law and then tries to cover up her tracks. The arrogance is obvious from her testimony. They should impose the stiffest penalty the law will allow. However, I doubt this will make any changes to her future behaviour. Once a snake, always a snake.

Calling her a lady is very generous.

The thing is, she didn't break the law-what she did break were the IIROC's rules. Similar to a lawyer being disbarred for breaking the law society's rules even though they didn't break the law. The difference of course is that people don't expect financial advisors to be unethical.

[spanky123]

Calling her a lady is very generous.

The thing is, she didn't break the law-what she did break were the IIROC's code of conduct. Similar to a lawyer being disbarred for breaking the bar association's rules even though they didn't break the law. The difference is, people don't expect financial advisors to be unethical.

Last time I checked, forging signatures was illegal even if it was only to try and streamline a process.

I think that IIROC's problem is that they are reluctant to slap down a broker thinking that it will bring negative attention to the whole industry. Reality is that this ongoing slapstick comedy with Carolann is even worse for public relations.

[Phil McAvity]

^So why have none of the proceedings against her taken place in a court of law?

[Holden West]

^I think there would have to be a victim to press charges, no? AFAIK, no clients complained.

Although people are calling this a victimless act--to me, the worst thing was when Steinhoff told her UVic co-op student to falsify the forms. The student was in the position of having to obey a violation of the code of conduct knowing this same boss would later be filling out an evaluation form that the UVic instructors would use in determining the final mark in the co-op course.

It's one thing to cut a little red tape, it's another thing to destroy the reputations of your assistants and employees by blaming the forgeries on them.

I wonder how Carolann graded the student on this question:

Social Responsibility

• Identifies personal convictions and explores options for putting these convictions into practice
• Accepts responsibility for own actions
• Evaluates ethical aspects of decision making
• Demonstrates respect for a diversity of ideas and the rights of others
• Exhibits personal, professional, and academic honesty
• Chooses ethical courses of action
• Participates in activities that contribute to community
• Builds equitable relationships
• Acts responsibly in accordance with sound principles of sustainability
• Considers global implications when making decisions

Recognizes how beliefs and actions fit within the context of a greater community:

• Exemplary
• Accomplished
• Developing
• Beginning
• No demonstrated achievement
• Not applicable

[Phil McAvity]

^Yeah, such irony.

^I think there would have to be a victim to press charges, no? AFAIK, no clients complained.

There are plenty of crimes that have no victims. The first one that comes to mind is drunk driving.

Although people are calling this a victimless act--to me, the worst thing was when Steinhoff told her UVic co-op student to falsify the forms. The student was in the position of having to obey a violation of the code of conduct knowing this same boss would later be filling out an evaluation form that the UVic instructors would use in determining the final mark in the co-op course.

It's one thing to cut a little red tape, it's another thing to destroy the reputations of your assistants and employees by blaming the forgeries on them.

There was nothing stopping the student from telling their instructor of Steinhoff's improprieties though. For all I know a student may have been the whistleblower on her because none of her clients were complaining.

[spanky123]

There was nothing stopping the student from telling their instructor of Steinhoff's improprieties though. For all I know a student may have been the whistleblower on her because none of her clients were complaining.

Not realistic.

Carolann had and still has one of the largest books of business of any broker in Victoria. The simple reason why she keeps surviving is because she makes a heck of a lot of money for herself and any firm she works with.

Anyone in her office or the industry that sticks their neck out risks having their head chopped off!

[charlietuba]

So who tells the client how much they are making?

[spanky123]

So who tells the client how much they are making?

Simple math. $150 million dollar book means that you are likely bringing in at least $2 million a year and more if you are churning deals.

[Holden West]

Her suspension was due to commence on Oct. 15, but the commission agreed to stay that order pending a hearing and review of IIROC's decision on both liability and penalty. That hearing will be held on March 5. Meanwhile Steinhoff will be subject to strict supervision by her current employer, Queensbury Securities.

Read more: http://www.vancouver...l#ixzz1680ORvgX

[Rob Randall]

Stunning reversal:

Victoria investment adviser Carolann Steinhoff wins appeal

BCSC review panel overturns penalties, including one-year licence suspension and fine of $60,000 and costs of $40,000

By David Baines, Vancouver Sun April 1, 2011

“It appears to us that the panel, having concluded that Steinhoff was both untruthful and possessed a strong sense of entitlement and station, made its findings against her on that basis, instead of rigorously testing whether the evidence in support of the allegations was ‘clear, convincing and cogent.’”

It continued: “We have set aside almost all of the panel’s significant findings on the basis that they were not supported by clear, convincing and cogent evidence.”

Read more: http://www.vancouver...l#ixzz1IXABCZGY

Here is the BCSC press release:

Commission overturns IIROC panel decision that Victoria broker contravened IIROC rules

VANCOUVER, April 1 /CNW/ - A British Columbia Securities Commission panel has overturned an Investment Industry Regulatory Organization of Canada (IIROC) panel decision that Victoria broker Carolann Steinhoff contravened IIROC rules.

In March of 2010, an IIROC panel found that Steinhoff, then employed at the Victoria branch of Wellington West Capital Inc., instructed or condoned a practice among her staff of altering and creating false client documents that included cutting and pasting clients' signatures. The panel also found that Steinhoff frustrated and obstructed investigations into her conduct.

The IIROC panel later suspended Steinhoff and made orders against her, including a fine of $60,000 and costs of $45,000. A commission panel stayed the IIROC orders pending the outcome of the commission's review of the IIROC panel decision.

After a hearing in March, 2011, the BCSC panel set aside both IIROC decisions, finding that the evidence the IIROC panel relied on in making its decision was insufficient.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities within the province. You may view the decision on our website www.bcsc.bc.ca by typing in the search box, Carolann Steinhoff or 2011 BCSECCOM 147.

[charlietuba]

breathtaking!

[VicHockeyFan]

Wow, this guy was high-profile on CFAX and he specialized in seniors.

http://communities.c...regulators.aspx

http://www.canada.co...395607&sponsor=