Former PI Financial owner receives $5-million fine and a permanent ban from working in securities industry

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The penalties come after a regulatory panel found he engaged in fraudulent conduct with loans he used to finance the purchase of several investment advisory firms

Gary Ng, the former owner of PI Financial Corp. and a former co-owner of Bridging Finance Inc., has received a $5-million fine and a permanent ban from working in the securities industry after a regulatory panel found he engaged in fraudulent conduct with loans he used to finance the purchase of several investment advisory firms.

Earlier this month, IIROC announced that the hearing panel had concluded Mr. Ng had engaged in fraudulent conduct and had failed to co-operate with the regulator’s enforcement staff who were conducting an investigation. IIROC’s reasons for the hearing decision and the penalty have not yet been made public yet.

The regulator also alleged that Mr. Ng supplied falsified collateral when buying a 50-per-cent stake in private debt manager Bridging Finance in the summer of 2019. Bridging lent Mr. Ng’s companies more than $131-million – and the loans are now part of a much larger investigation intoEarlier this year, Mr. Ng was also charged by the RCMP’s Integrated Market Enforcement Team , with one count of fraud over $5,000 and one count of laundering the proceeds of crime.

 

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