The panel found that between February and October 2022, the condominium corporations purchased more than $4.8m in mutual funds based on Cappola’s recommendations, which later resulted in $122,665.68 in losses.
Investors Group Financial Services Inc., where Cappola was a dealing representative, offered $168,406.96 in compensation to cover those losses and lost interest.
Cappola had received $112,935.52 in commissions from the sales, which were later reversed.
As part of the settlement, Cappola agreed to pay a $30,000 fine and $2,500 in costs. He also agreed to comply with CIRO’s Mutual Fund Dealer Rules in the future.
At the time of the conduct, Cappola conducted business in the Richmond Hill, Ontario area as a dealing representative. He remains registered with Investors Group Financial Services Inc.