CONSENTS BEING RECEIVED IN THE FOLLOWING MATTER,
THE DISCIPLINE COMMITTEE MADE THE FOLLOWING ORDER:
Alfa Insurance Brokers o/b 714276 Ontario Ltd.
Registration Number: A00029
Hamilton, Ontario
Pashalis Giore
Registration Number: R004248
Hamilton, Ontario
HEARING DATE: July 18, 2013
MISCONDUCT: Ont. Reg. 991, ss. 15(1)(13) and (14); 16(4) 1, 4(i)(ii), 5 and
(6)
PARTICULARS OF THE COMPLAINT:
Alfa Insurance Brokers o/b 714276 Ontario Ltd. (hereinafter referred to as “Alfa Insurance”) continuously operated in a net trust deficit position especially for the months of August 31, 2012, September 30, 2012 and October 31, 2012, as determined by RIBO staff in their investigation.
Further, Alfa Insurance may have disbursed or withdrew moneys from its trust account not in accordance with the terms and conditions upon which the moneys were received or otherwise provided and Alfa Insurance, may have failed to maintain, at all times, in its trust account moneys and trust investments that are sufficient, together with trust funds receivable, to meet all its trust obligations.
Pashalis Giore was a registered insurance broker and is Principal Broker of Alfa Insurance and knowingly concurred in the misconduct of the corporation.
The Discipline Committee approved a consent agreement between Pashalis Giore and RIBO, and ordered:
(a) That Alfa Insurance shall file with RIBO, monthly position reports in Form-1 showing full compliance for one year commencing with the month ending April 30, 2013, and thereafter as at May 31, 2013 to March 31, 2014, all of which position reports must reflect that the brokerage is maintaining its net trust position and net equity position in compliance with the Regulations, and each of which position reports are to be accompanied with the following verifying financial attachments; internally generated balance sheet, income statement, summary page of the aged premium receivable listing, copies of the original bank reconciliations and statements on the trust and general accounts, and any other working paper that verifies a balance that differs with a system generated balance. Should these financial attachments not be applicable to the brokerage, then RIBO and the broker will agree on what these verifying financial documents will be. These reports are to be in RIBO’s offices 30 days after the respective month end.
(b) That Alfa Insurance shall file with RIBO, quarterly position reports in Form-1 showing full compliance for one year commencing with the month ending June 30, 2014, and thereafter as at September 30, 2014, December 31, 2014 and March 31, 2015, all of which position reports must reflect that the brokerage is maintaining its net trust position and net equity position in compliance with the Regulations, and each of which position reports are to be accompanied with the following verifying financial attachments; internally generated balance sheet, income statement, summary page of the aged premium receivable listing, copies of the original bank reconciliations and statements on the trust and general accounts, and any other working paper that verifies a balance that differs with a system generated balance. Should these financial attachments not be applicable to the brokerage, then RIBO and the broker will agree on what these verifying financial documents will be. These reports are to be in RIBO’s offices 30 days after the respective month end.
(c) That RIBO receive written confirmation from Alfa Insurance as well as its bank that there is no longer an overdraft arrangement on the trust account of the brokerage; such confirmations to be received in RIBO’s offices no later than May 15, 2013.