Federal regulator to sanction former St. John’s financial adviser

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A St. John’s woman has been found in serious breach of the rules applicable to investment advisers and businesses in Canada.

Joan McCarthy, 54, was a financial advisor at the St. John’s branch of Management MD, which deals with investment planning for physicians.

Red flags were first raised in 2019, with the Federal Investment Industry Regulatory Organization of Canada opening an investigation in June of that year.

Since then, disciplinary hearings have followed one another without either McCarthy or his lawyer showing up for any of them. They also did not provide the documents requested by the regulator.

Yesterday, despite his absence, the Hearing Panel accepted the allegations as fact; namely, that she funneled nearly $ 800,000 in client money to her own bank account by forging signatures and did not cooperate with the investigation.

At the same time yesterday, the criminal case against McCarthy was taken to provincial court. There, she faces 24 counts in total; six each for fraud over $ 5,000, forgery, forgery and possession of property obtained by crime.

His lawyer, John Duggan, was in court on his behalf but declined to comment on any aspect of the case, which was again postponed until early January.

Convictions there could result in prison terms and restitution orders.

Meanwhile, the federal regulator will now consider sanctions for McCarthy, which can range from fines to permanent expulsion from the industry.


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