Gary Ng, ex-owner of PI Financial, fined $5 million

In a notice of hearing dated May 17, IIROC cited a May 9, 2022 decision in which it found that Ng acted to Consolidated Rule 1400 and section 8104 of the IIROC Consolidated Rules. Staff found that Ng engaged in fraudulent conduct with respect to financing, and he failed to cooperate with an investigation being conducted by IIROC enforcement staff.

The investigation, which was formally initiated in February 2020, alleged that Ng committed the violations when he was a Director, Investor, Executive, and Registered Representative with PI Financial; and a Director, Executive, and Registered Representative with Chippingham Financial Group.

A statement of allegations from IIROC dated November 2, 2020 said that Ng – in collusion with Donald Metcalfe, who was an approved person who worked with Ng at Chippingham, then later at PI Financial – fraudulently procured a total $172 million in loans from three lenders between November 2018 and January 2020 by presenting falsified records to serve as collateral.

The loans were used to purchase 100% of the outstanding shares of PI Financial, and a 50% interested in a Canada-based private company that IIROC referred to as “B Corp.”

More details, including the written reasons for the decision, will be revealed in due course.