Ex-rep failed to cooperate with SRO’s crypto inquiry

A former fund rep who failed to participate in a regulatory investigation into his crypto trading activities has been sanctioned by the Canadian Investment Regulatory Organization (CIRO).

A CIRO hearing panel found that Debojyoti (Debo) Majumder, a former rep with HSBC Investments (Canada) Inc. in Richmond Hill, Ont., failed to cooperate with an investigation by the self-regulatory organization’s enforcement staff.

According to CIRO’s allegations, Majumder ignored staff’s efforts to investigate his conduct after he was sued by a friend that allegedly gave him between $40,000 and $50,000 to trade crypto — starting before he became a rep — and failed to return that money.

In September 2022, a court entered a default judgment against him in that case for $50,000, after he failed to defend the lawsuit.

The friend then complained to his dealer, and, in August 2023, Majumder resigned from the firm, and since then has allegedly ignored efforts by CIRO staff to investigate his conduct.

The panel permanently banned Majumder, fined him $50,000 and ordered $25,000 in costs against him.