(Vancouver, British Columbia) - February 28, 2023 – Following a sanctions hearing held on October 28, 2022, a hearing panel of the Investment Dealer Division of the New Self-Regulatory Organization of Canada (New SRO) imposed the following sanctions on Jeffrey Rutledge:
- pay a fine of $2,468,974, calculated as follows:
- $2,192,784 (including $1,942,784 in lieu of disgorgement) for the misappropriation from the joint accounts of his clients RS and SS;
- $226,190 (including $176,190 in lieu of disgorgement) for the misappropriation from the account of client SB; and
- $50,000 for failing to cooperate with IIROC Staff;
- be permanently barred from approval in any capacity; and
- be permanently barred from employment in any capacity by a Regulated Person.
The respondent is also required to pay costs in the amount of $10,000.
The sanctions decision can be found at:
Re Rutledge, Jeffrey, 2022 IIROC 36
In an earlier oral decision dated June 20, 2022, the Hearing Panel found that the respondent acted contrary to Dealer Member Rule 29.1 (prior to September 1, 2016), Consolidated Rules 1400 and 8100. Rutledge was found to have misappropriated funds from client accounts and failed to cooperate with Enforcement Staff who were conducting an investigation.
The Investment Dealer Division of New SRO, formerly IIROC formally initiated the investigation into the respondent’s conduct in December 2018. The violations occurred while the respondent was a Registered Representative with the Vancouver branch of PI Financial Corp., at the time an IIROC-regulated firm. Rutledge is no longer a registrant with a New SRO
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All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website.
Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by New SRO-regulated firms (Investment Dealer Division) is available free of charge through the AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.
New SRO investigates possible misconduct by its member firms and individual registrants. It can bring disciplinary proceedings which may result in sanctions including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.
New Self-Regulatory Organization of Canada (New SRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. New SRO is carrying on the regulatory functions of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA), and is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.newselfregulatoryorganizationofcanada.ca.
Other Notices associated with this Enforcement Proceeding:
04/22/22IIROC to Hold Disciplinary Hearing for Jeffrey RutledgeType: Enforcement NoticeSubtype: Hearing
06/03/22IIROC to Hold Disciplinary Hearing for Jeffrey RutledgeType: Enforcement NoticeSubtype: Hearing
07/12/22IIROC to Hold Penalty Hearing for Jeffrey RutledgeType: Enforcement NoticeSubtype: Hearing