Decision in brief: Dziadecki v Canadian Investment Regulatory Organization, Application for Review, October 23, 2024

Leszek Dziadecki worked for Global Maxfin Investments and was registered as a dealing representative of that firm, with the Canadian Investment Regulatory Organization (CIRO).

CIRO decided that Dziadecki had recommended, sold, or helped to sell certain mortgage-related investments outside of his work for Global and without Global’s approval. CIRO decided that Dziadecki must pay a $300,000 fine and $30,000 in costs. CIRO also prohibited him from doing any securities-related business while employed by or associated with any mutual fund dealer registered with CIRO.

Dziadecki says that CIRO’s decisions are wrong, and he asks the Tribunal to reverse them. He says that he had told Global that he would be doing mortgage-related activity through another company he owned, and that Global approved that. He says CIRO ignored the fact that he didn’t actually sell any mortgage-related investments or get any money from them. He also says CIRO did not properly take into account the evidence of one of the witnesses. Finally, he says that the sanctions CIRO ordered against him are too harsh.

The Tribunal decided that CIRO did not make any errors that would justify reversing CIRO’s decisions. There was no error in CIRO’s decision that Dziadecki traded in or advised about mortgage-related investments, and that Global had not approved those activities. It was not necessary for him to have completed a sale of the investments or to have received money. Finally, the sanctions ordered against him were fair.