Ex-investment adviser had client pay mortgages

London man fined $15,000 for breaking rules by borrowing $44,000 to pay debts

A former London investment adviser has been fined $15,000 for violating rules by borrowing about $44,000 from an elderly client.

Carlo Michetti, a former agent with the London office of Edward Jones, faced a disciplinary hearing by the Ontario branch of the Investment Industry Regulatory Organization of Canada (IROC), a self-regulatory organization which oversees all investment dealers.

The decision released by the IROC hearing panel said Michetti worked for Edward Jones from 2011 to June 2016 and had a 72year-old client who was also a friend and neighbour.

Michetti took out a second mortgage on his home but could not meet the payments. In February 2016 he borrowed $30,000 from his client to pay off the second mortgage. The client also made payments of $1,340 a month to help Michetti pay his first mortgage and property taxes.

Michetti already faced an internal investigation by Edward Jones because of his financial problems In January 2014, the company warned him about personal financial dealing with clients. He was fired by Edward Jones in June 2016 and had not repaid any of the money to his client at that time.

Michetti told the IROC staff said he has arranged to pay back his former client over the next five years.

The IROC panel levied a fine of $15,000 against Michetti as well as $1,000 in costs.

The panel also ruled Michetti would have to pass a conduct and practices examination before he can re-register with IROC and face six months of supervision.