Wednesday, January 18, 2012

Barret Capital faked accounts to cover up client losses, investment regulator alleges

According to Canadian regulators, not only did Barret Capital use clients' segregated funds for their own trades, THEY FAKED CUSTOMER ACCOUNT STATEMENTS TO COVER IT UP!!!!
Got Phyzz!?!

A Toronto investment firm used clients’ money to make unauthorized trades, then produced fake account statements to cover up tens of thousands of dollars in losses when clients demanded answers, according to accusations from an investment regulator.

The accusations against Barret Capital Management Inc. were made in an affidavit from the Investment Industry Regulatory Organization of Canada. The affidavit was revealed as part of a rare IIROC “expedited hearing.” IIROC is seeking to suspend Barret’s membership.
The affidavit, by IIROC investigator Vito Pedone, alleged Barret has 162 clients, more than half of whom live in Israel. The total scope of the alleged losses wasn’t detailed in the affidavit.
Barret lawyer Darryl Mann called the proposed sanctions a “death penalty,” and asked for a delay so he could prepare a proper defence. The three-member panel granted his request, ruling that the full hearing would be delayed until Feb. 13. Until then, Barret is barred from trading in the futures and options markets, while any trades in physical gold or silver will need to be approved by a monitor from Laurentian Bank Securities.
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