Kenneth Rijock

Kenneth Rijock

Sunday, October 9, 2016

NORTHLAND WEALTH MANAGEMENT HAD NO COMPLIANCE OFFICER WHEN ITS CLIENTS LOST MILLIONS IN THE CAYMAN GANG OF FOUR SCANDAL



In 2015, when Lawrence Heath and Alex Shearson, the first two Canadian victims of the Cayman Gang of Four scandal came forward, contact was made to officers at Northland Wealth Management, Inc., their financial advisors. Inasmuch as there were many questions about missing funds, transfers of assets, authorization, or lack of it, for transfers of clients, and other issues, the clients asked to speak with Northland's compliance officer. Their multiple requests were denied, by Northland management.

There were a number of answers given to the clients: at one time, they were advised that the compliance officer for the firm was not available, but that his name was "Oscar." Actually, in truth and in fact, there was not then, nor is there now, any such person, working in any compliance capacity at Northland. I cannot even find anyone listed at Northland, in 2015, or to date, as an employee or staff member, under that name.

Next, they claimed that Arthur Salzer was, among other titles, the compliance officer at Northland. If you examine Mr. Slazer's biography, and publicly-listed information that he has posted online, you can see that he has neither the academic training, nor practical experience, to act as a compliance officer, or even as a compliance assistant, working under a duly qualified compliance professional. What the victims, who were then clients of Northland, were told was a misrepresentation of material fact, more commonly known as a lie.



Now, in the filings made in the Ontario Superior Court filing against Northland, the company has magically generated a compliance officer, and backdated his employment several years, to create the presence of a compliance officer, when there was none on staff. I strongly suspect that this is a onetime outside consultant whom they have hurriedly "promoted," in order to cover the fact that a major broker-dealer and wealth management firm had NO compliance officer.

Longtime readers of these articles know that I have prior experience, as an attorney handling matters for securities dealers, and as a compliance officer at a major international investment firm, and I am well aware that the failure to have a full-time, on-site compliance officer, in the securities field, constitutes gross negligence, and is managerial malpractice, on the part of the company's two executives, Paul Mascard and Arthur Salzer.



I wonder if Northland's management knows that fabricating and falsifying evidence in the Province of Ontario is a serious matter, and certain to come to the attention of the authorities, including but not limited to, the Ontario Securities Commission.


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