CIRO Hearing Panel Issues Reasons for Decision on Sanctions in the Matter of Mohammad Movassaghi

Vancouver (British Columbia), November 19, 2024 – Following a sanctions hearing pursuant to the Mutual Fund Dealer Rules held on December 12, 2023, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) imposed the following sanctions on Mohammad Movassaghi.

1. a fine of $70,000; and
2. a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member of CIRO registered as a mutual fund dealer.

Mohammad Movassaghi is also required to pay costs in the amount of $45,000.

The reasons for decision on sanctions can be found at:

Re Movassaghi 2024 CIRO 79

In an earlier decision dated November 7, 2023, the Hearing Panel found that Mohammad Movassaghi:

1. falsified client X’s signature on 9 account forms;
2. instructed another Approved Person to submit 3 KYC Update Forms to update records concerning the investment accounts of client X without the knowledge or authorization of client X and failed to exercise due diligence to learn the fact relative to client X or to maintain accurate and complete KYC information on file prior to client trades;
3. processed or directed other Approved Persons or employees subject to his authority to process at least 180 trades in the investment accounts of client X without the knowledge or authorization of client X;
4. created or in some cases directed another Approved Person or other employees who worked in his office to create records of purported instructions received from client X which had not in fact been received or failed to exercise due diligence to ensure that the Records of Instructions accurately described instructions that had been received from client X; and
5. failed to disclose actual or potential conflicts of interest to the Member and failed to abide by the conditions of approval of his outside activities.

The decision on Liability can be found at:

Re Movassaghi 2023 CIRO 18

The violations occurred while Mohammad Movassaghi conducted business in the Vancouver, British Columbia area.