The letter inaccurately stated that an RBCDS account contained $250m in liquid assets and claimed the funds were free of liens or restrictions. The letter was prepared without additional due diligence or adherence to RBCDS compliance procedures.
Nafarrate sent the letter from his personal email and later confirmed its contents during a Zoom meeting with R.V. and a lender on September 1, 2023.
The lender, upon reviewing the letter, escalated concerns to RBCDS, prompting an investigation by RBC’s Global Special Investigations Unit (RBCGSIU). The investigation revealed that the account referenced in the letter had a negative balance.
RBCGSIU interviewed Nafarrate in late September 2023, during which he admitted to creating the letter. Shortly thereafter, on October 18, 2023, his employment with RBCDS was terminated.
Under the terms of the settlement agreement, Nafarrate accepted a nine-month prohibition from conducting securities-related business with any CIRO-regulated firm, effective October 19, 2023.
