The Capital Markets Tribunal will hold a hearing on Nov. 10 to consider extending a temporary order issued against Adam Joseph Arquette and Arquette Insurance and Wealth Management, the Ontario Securities Commission (OSC) announced on Oct. 30.
The commission issued a temporary order on Oct. 27 that immediately halted all securities trading by Arquette, AIWM, or anyone acting on their behalf. The order also revoked any exemptions under Ontario securities law that would otherwise apply to the respondents.
Under the Securities Act, the temporary order expires 15 days after issuance unless extended by the Tribunal. The OSC filed an application on Oct. 29 requesting a six-month extension, until April 27, 2026.
The commission’s Enforcement Division is investigating Arquette and AIWM for potential violations of Ontario securities law. According to the application, Arquette is an Ontario resident and principal of AIWM, a federally incorporated company based in Ontario. Neither Arquette nor AIWM has ever been registered with the OSC.
The investigation found evidence that Arquette and AIWM solicited investments from clients to be managed by them in exchange for fees of about 2.5% of client investments. The respondents may have controlled more than 300 client investment accounts belonging to more than 100 unique clients, according to the application.
The OSC alleges Arquette and AIWM may have co-mingled client funds with Arquette’s personal funds, including deposits into his personal trading accounts. The application states the respondents may have concealed their conduct, including trading losses, by preventing brokerage statements from being sent directly to clients and misrepresenting account values and performance.
The commission believes Arquette and AIWM may still be receiving fees from clients for trading securities and may continue to solicit new clients.
The alleged conduct could constitute fraud under section 126.1(1)(b) of the Securities Act and unregistered trading and advising in securities, contrary to section 25 of the Act, according to the application.
The OSC stated the order is necessary to protect investors from serious and ongoing harm and that extending it would be in the public interest. The investigation remains ongoing.
The hearing will be held by video conference on Nov. 10.
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