Orillia-area investment advisor convicted of fraud found liable by regulatory panel

An Orillia-area financial advisor convicted in criminal court of defrauding clients out of $1.8 million has been found liable on conventions by the Canadian Investment Regulatory Organization (CIRO) following a disciplinary hearing.

After failing to appear before CIRO at the beginning of his hearing last week, Kevin Douse has been found liable and is subject to sanctions from the regulatory body under the Mutual Fund Dealer Rules.

Douse, 41, who worked for more than a decade as a financial advisor in the Orillia area, was accused of misappropriating funds from clients and failing to cooperate with an investigation by CIRO staff into his conduct. Douse was on hand virtually Friday morning when the panel in Toronto offered Douse an opportunity to speak before it ruled how Douse should be sanctioned.

“I know I have forever devastated many people,” said Douse. “I can’t undo what I’ve done, but I can continue taking responsibility, remain committed to my treatment, and keep working to make restitution.”

Douse said he remains committed to making restitution payments to clients, but when asked how long he knew that would take, Douse said no.

“Given my financial and mental situation and the fact that I want restitution to be paid, I’m asking the panel not to impose costs.” Douse represented himself during the disciplinary hearing process. He claimed he has no funds or assets and has relied on family members to cover his living expenses.

The CIRO panel heard evidence Douse misappropriated hundreds of thousands of dollars from at least seven clients over several years by forging documents and signatures, taking money meant for retirement savings, investments, and tax-free savings accounts, and depositing that money into his personal bank accounts to pay his bills and other clients.

Douse pleaded guilty in criminal court in September to defrauding 25 clients, many of whom were longtime friends and loved ones, out of nearly $2 million between 2016 and 2023.

The CIRO panel heard Douse asked clients to personally write him cheques worth tens of thousands of dollars; he’d then deposit the funds into his bank accounts and use the money for himself without their knowledge, providing them fake statements and documents to keep the fraud going.

The panel said it will reserve its judgement and deliver a decision on sanctions in a few weeks.

Douse’s criminal court sentencing hearing is scheduled to begin in February.