Decision Notice - CIRO Hearing Panel issues Reasons for Decision on Penalty for Adib Khaldi (also known as "Deebo")

HALIFAX, NS, March 8, 2024 /CNW/ - Following a penalty hearing held on February 15, 2024, a hearing panel of the Canadian Investment Regulatory Organization (CIRO) under the Mutual Fund Dealer Rules issued their Reasons for Decision confirming the following sanctions imposed on Adib Khaldi:

1. 1. 1. a fine of $15,000,
         
         
      2. a two-year prohibition on his authority to conduct securities related business while in the employ of or associated with any Dealer Member of CIRO that is registered as a mutual fund dealer, and
         
         
      3. write or rewrite the Conduct and Practices Handbook course prior to being re-registered.

Adib Khaldi is also required to pay costs in the amount of $10,000.

The penalty decision dated March 1, 2024, can be found at:

Re Khaldi, 2024 CIRO 29

In an earlier decision dated January 15, 2024, the Hearing Panel found that Adib Khaldi:

1. 1. 1. engaged in securities related business outside the Member by providing investment advice to individuals in respect of non-mutual fund securities using an online forum,
         
         
      2. engaged in an unapproved outside activity by receiving monthly subscription payments in relation to an online forum where he provided investment advice to individuals, and
         
         
      3. processed transactions in respect of approximately 23 clients as redemptions and purchases, rather than as switches thereby:
         1. engaging in conduct which gave rise to a conflict of interest which Adib Khaldi failed to disclose to the Member, or ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client; or
            
            
         2. failing to comply with the Member's policies and procedures with respect to the processing of trades as switches.

The decision on Liability can be found at:

Re Khaldi, 2024 CIRO 10

During the period described in the Notice of Hearing, Adib Khaldi conducted business in the Dartmouth, Nova Scotia area.

All information about disciplinary proceedings relating to current and former member firms and individual registrants under the Investment Dealer and Partially Consolidated Rules (for investment dealers), the Mutual Fund Dealer Rules (for mutual fund dealers) and the Universal Market Integrity Rules (UMIR) is available on CIRO's website. 

Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by CIRO-regulated investment firms is available free of charge through the AdvisorReport service. Information on how to make dealer, advisor or marketplace-related complaints is available by calling 1-877-442-4322.

CIRO 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.

The Canadian Investment Regulatory Organization (CIRO) is the national self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada's debt and equity marketplaces. CIRO 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.ciro.ca.

SOURCE Canadian Investment Regulatory Organization (CIRO)