Decision Notice – CIRO Sanctions Zahir Hussain Lehri
TORONTO, Nov. 6, 2024 /CNW/ – 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:
a) 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
b) 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:
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:
a. open new accounts at the Member for clients;
b. complete and submit for processing Know-Your-Client forms;
c. implement a leveraging strategy for these clients using false or inaccurate client financial documentation; and
d. process trades in the accounts of these clients using the Respondent’s representative code;
thereby:
e. facilitating stealth advising by the other Approved Person, and
f. 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:
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.
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.
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.
SOURCE Canadian Investment Regulatory Organization (CIRO)
