Barret Capital Management accused of using client funds for its own purposes

January 17, 2012 by · Leave a Comment
Filed under: Legal News 

With the ongoing lack of answers and clients funds in the MF Global fraud, we have another alleged instance of a trusted financial fiduciary using their clients money to trade on the companies book for internal profits.  The investors at Barret better put pressure on the regulators to prosecute this as hard as possible and not let them get off the hook by admitting no wrong-doing.   It was a joke watching the C-span hearings of former MF Global boss Jon Corzine.   He sat up their and told people about his intentions, in my opinion, that does not matter.

You should not be able to use your “intentions” as a defense.   We HOPE, your intentions were not to mis-use a clients trust in you and your company.  The facts are the facts and if we want a healthy and functioning banking, capital markets and regulatory system, we need to take a very hardline approach on this type of behavior, too many people are getting off with too little admitted guilt.  Why are the people who are their to protect us, so capture that they can’t seem to do their job effectively?

Winnipeg Free Press – One of Canada’s investment regulators has accused Barret Capital Management, a firm specialized in futures and options on metals and other exchange-traded commodities, of using client money for its own purposes.

The Investment Industry Regulatory Organization of Canada warned Monday that Barret clients are at risk due to the firm’s “ongoing misappropriation of their money to fund losing trades and ongoing misinformation about the value and holdings in their accounts.”

The allegations have not been proven.

IIROC has set a hearing for Tuesday morning to suspend Barret’s membership in the organization and stop Barret from dealing with the public.

In requesting the expedited hearing, the regulator alleged Barret made “significant misrepresentations to clients including through manipulating account values, misrepresenting account values and holdings by way of false account statements or otherwise providing false information to clients and by manipulating on and off book payments to clients.”

IIROC is a national regulatory organization that oversees investment dealers and trading activity on debt and equity marketplaces in Canada.


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