CIRO Sanctions Zahir Hussain Lehri

Toronto (Ontario), November 6, 2024 – Following a sanctions hearing pursuant to the Mutual Fund Dealer Rules held on August 30 and September 5, 2024, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) imposed the following sanctions on Zahir Hussain Lehri:

1. a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any Dealer Member of CIRO; and
2. a fine of $185,523 which includes disgorgement of $35,523.

Zahir Lehri is also required to pay costs in the amount of $25,000.

The sanctions decision can be found at:

Re Lehri 2024 CIRO 75

In an earlier decision dated June 7, 2024, the Hearing Panel found that Zahir Lehri:

1. allowed an Approved Person who was not registered with the Member to:
   1. open new accounts at the Member for clients;
   2. complete and submit for processing Know-Your-Client forms;
   3. implement a leveraging strategy for these clients using false or inaccurate client financial documentation; and
   4. process trades in the accounts of these clients using the Respondent’s representative code;
      
      thereby:
   5. facilitating stealth advising by the other Approved Person, and
   6. failing to use due diligence to learn the essential facts relative to the clients and to ensure that the leveraging strategy and investments that were recommended and implemented for clients were suitable.
2. misappropriated or failed to account for monies received from a client and another individual, and
3. failed to cooperate with an investigation into his conduct by Staff of the MFDA.

The decision on Liability can be found at:

Re Lehri 2024 CIRO 55

During the period described in the Notice of Hearing, Zahir Lehri conducted business in the Brampton, Ontario area. Zahir Lehri is not currently registered in the securities industry in any capacity.