London financial planner embezzled $1.3m; fined $1.7 million

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A London financial planner has been fined $1.7million and banned for life from trading securities after a trade association determined he embezzled $1.37million of money from its customers over a period of five years.

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A London financial planner has been fined $1.7million and banned for life from trading securities after a trade association determined he embezzled $1.37million of money from its customers over a period of five years.

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The Mutual Fund Dealers Association of Canada (MFDA) has ruled that Chanrith Yin committed four counts of professional misconduct by embezzling investors’ money, soliciting clients to invest in unapproved investments, engaging in undisclosed activities and failing to cooperate with the association’s investigation.

Yin did not attend or send a representative to the regulator’s March 26 virtual hearing, where a panel heard moving accounts of the financial fallout suffered by his former clients.

“The Respondent’s conduct is so flagrant that he should never be re-admitted to the securities industry,” the three-member panel wrote in its decision. “The conduct has not only harmed its clients, but such conduct is hurting the securities industry. . . . A large general deterrent is required in this case.

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The fine and ban on trading securities is the latest setback for Yin, 41, who faces criminal charges and civil lawsuits related to money raised through his company, Nobis Group Property Management and Leasing.

Yin raised $1.68 million from 10 investors and one other person between 2014 and 2019, promising returns between 5 and 20% on private mortgages. He paid a total of $314,000 in interest installments and lump sum payments, but never repaid the initial investments and eventually stopped monthly interest payments, the association said.

In total, Yin embezzled $1.37 million of investors’ money, including $603,452 from a mother and daughter.

During the March hearing, the daughter read an emotional victim statement detailing how her windowed mother lost her life savings and had to remortgage her house.

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Another client described the deep shame she felt for recommending Yin to her family members.

An elderly client did not have a computer and resorted to faxing to complain about the $10,000 investment on which Yin never paid interest or repaid.

“The evidence presented to us. . . dramatically shows how the loss of their investments has affected the daily lives of clients,” the panel wrote. “They all suffered emotionally and in at least one case, physically.”

Some of the clients first met Yin through her father, Chanrith Yin Sr., the operator of Better Financial, who handled their tax filings and other financial matters, the agency said. association.

Elder Yin is also listed as a defendant in some of the civil lawsuits that remain in court.

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Yin was a registered mutual fund broker operating under the trade names Prime Wealth and Better Financial until 2020 when his registration with the MFDA was terminated. He registered Nobis as a sole proprietorship in 2014 and failed to disclose it to relevant financial authorities, the association said.

It’s unclear how the association plans to collect the $1.7 million fine, which includes the $1.37 million owed to customers, $350,000 for malpractice, plus $30,000 to cover association fees.

An email to an MFDA spokesperson went unanswered.

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“If the respondent (Yin) is found to have funds and pays the fine, we leave it to the good judgment of others to determine how that sum is used, in light of the client’s losses in this case,” the panel said. wrote, noting that the association’s investor protection fund only covers customers against insolvency-related losses.

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The law enforcement attorney for the association previously detailed extensive efforts to contact Yin by regular mail, registered mail, email and a visit to his office. Process servers also unsuccessfully attempted to deliver documents to his Old South home, an old London address and his mother-in-law’s home in Lakeshore.

“When his conduct was discovered, he disappeared and the MFDA was unable to locate him,” the association said.

The panel also saw exchanges between Yin and his clients, including conversations in which Yin made a series of empty promises, including selling his Old South home, to return their money.

Inset Chanrith Yin owned this remarkable house on Elmwood Avenue in London's Wortley Village.  The financial advisor faces several lawsuits from clients.  (MIKE HENSEN, The London Free Press)
Inset Chanrith Yin owned this remarkable house on Elmwood Avenue in London’s Wortley Village. The financial advisor faces several lawsuits from clients. (MIKE HENSEN, The London Free Press)

Yin’s house at 152 Elmwood Ave. sold for $1.8 million earlier this year in a foreclosure sale by TD Bank. The upscale duplex had been vacant for nearly two years, resulting in water damage and mold.

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Property records show that Yin took out a mortgage from TD Bank for $1.74 million in 2018. He also took out another $1.1 million mortgage from private lenders, including a $300 loan. $000 from the wife of an alleged member of the Hells Angels.

The duplex’s new owners sold the two units last month for $1.1 million and $1.2 million, about $300,000 less than the combined asking prices, according to HouseSigma, a mobile app that tracks customers. house sales.

Yin, meanwhile, still faces criminal charges for fraud and possession of property obtained by crime. His case returns to court on August 4.

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