The Royal Bank of Canada (RBC) hired a wealth advisor in 2020 to manage millions in other clients’ funds only months after he filed a commercial proposal under the Bankruptcy and Insolvency Act (BIA) to pay a fraction of a reported debt totalling more than $2 million dollars.
A Government of Canada Bankruptcy and Insolvency Records Search obtained by True North shows that 42-year-old RBC wealth advisor Moize Goulamhoussen engaged in a commercial proposal for $2,102,872 in liabilities beginning on Nov. 5, 2019.
During the proceedings, Goulamhoussen listed his total assets at $122,000 and successfully completed the proposal with his creditors – which included the Canada Revenue Agency.
According to Goulamhoussen’s LinkedIn profile, Goulamhoussen began his job at Royal Bank of Canada’s Wealth Management arm as a portfolio manager and wealth advisor in 2020.
He states in his about page that he specializes in “tax savings solutions”, while his profile at RBC Wealth Management describes how his skills are “best suited for clients who have investable assets of over $1 million.”
Goulamhoussen is currently embroiled in a court proceeding with his ex-wife Stefanie Goulamhoussen concerning a divorce settlement and support payments. Transcripts seen by True North from the Nov. 1, 2022 Ontario Superior Court hearing include allegations by Mrs. Goulamhoussen’s lawyer, Elliot Vine, related to alleged “fraudulent behaviour” on Mr. Goulamhoussen’s part and allegedly leaving “taxpayers on the hook” for unpaid debts.
Goulamhoussen is not facing any criminal charges and the allegations have not been proven in court.
Vine told Justice Lucy K. McSweeney that Goulamhoussen has left a tangled web of alleged financial inconsistencies, multi-million dollar home purchases, reported wealth transfers of vast sums and offshore accounts in tax haven countries.
“In November of 2019 [Goulamhoussen] enters into a consumer proposal with the CRA, claiming that he had no way to pay his outstanding $1.5-million-dollar tax debt to the CRA. He ends up swearing that all he can afford to pay is about $275,000, he can’t afford to pay the rest of that,” said lawyer Elliot Vine.
“So, the taxpayer’s on the hook for the 1.2 million, I guess. However, the evidence demonstrates that over the year of 2018 [Goulamhoussen] moved $1.4 million dollars overseas through his foreign exchange account,” he continued.
“[He] has engaged in fraudulent behaviour and misrepresentation to the Court and the Canada Revenue Agency.”
True North reached out to RBC Wealth Management to ask whether they were aware that Goulamhoussen was involved in a BIA proposal for debts to the CRA just prior to his employment as a wealth advisor.
“Given the allegations are before the courts and RBC’s ongoing commitment to employee privacy we are unable to comment further,” RBC Wealth Management director of communications Greg Skinner told True North.
“RBC requires employees to adhere to a Code of Conduct which is integral to the way that we conduct business with our clients. We have internal monitoring and compliance procedures that work to protect the integrity of our business and uphold both the trust of our clients, as well as the privacy of our employees.”
Goulamhoussen’s public RBC profile as well as his LinkedIn account claim that he is a Chartered Investment Manager (CIM), a prized designation in the investment banking industry.
“In addition to achieving a bachelor’s degree in Economics and Political Science from McGill University, Moize has completed rigorous training for the Chartered Investment Manager (CIM) designation,” claimed the RBC profile.
However, according to the Canadian Securities Institute (CSI) – the chief body which accredits CIMs across the country – Goulamhoussen holds no such designation at the present time.
“Moize Goulamhoussen isn’t an active CIM holder,” said assistant vice president of communication for Moody’s Corporation, the parent organization of the CSI, Tracy A. Fine.
CSI’s Code of Ethics requires that CIM holders declare if they’re “currently bankrupt or in the past 5 years have been adjudged bankrupt,” including any consumer or commercial proposals they have entered.
“The reasons for and the context of the consumer or commercial proposal would be reviewed by our Designation Ethics Committee. They may remove the designation where mismanagement and misconduct where factors that led to a consumer or commercial proposal,” Fine told True North in response to a general inquiry about the Code.
“In the last year, CSI has sent 29 cases of potential misconduct related to the CIM designation. Sanctions included removing the CIM designation in two cases.”
A CIM is also required to report “any legal action, allegations or complaints prior to being granted a designation and also each year upon renewal of that designation.”
“When a CIM applies or seeks to renew their designation, they are required to disclose any ongoing investigations or cases related to sanctions, professional misconduct, instances of bankruptcy or criminal offenses. All cases are referred to our external and independent Designation Ethics Committee,” explained Fine.
In a follow-up question to RBC Wealth Management, True North inquired whether they were aware of the fact that Goulamhoussen wasn’t an active CIM holder but did not receive any further replies.
Within the 163-page court document are an assortment of complex accusations levelled against Goulamhoussen by his ex-wife’s lawyer including a series of alleged transfers of wealth ranging from $530,000 to $1.4 million involving bank accounts in Dubai, Switzerland and an investment company in the Caribbean.
Goulamhoussen’s legal representation has denied any claims of wrongdoing and has insisted that he has complied with all court requirements and has fairly disclosed his financial records. An attempt by True North to contact Goulamhoussen and give him an opportunity to comment went unanswered.
Mrs. Goulamhoussen also declined a request for an interview.
The employment of Mr. Goulamhoussen by RBC raises a number of questions about the employer’s hiring practices which largely went unanswered. No answer was provided as to whether the bank was aware of Goulamhoussen’s settled proposal for debts owed to the CRA a few months prior to hiring him to manage vast amounts of other people’s wealth as well as the allegations levelled against him in a court of law.
Last year, RBC Wealth Management underwent a shakeup at its highest levels with former vice-president and branch director Mike Weber being removed from his position due to his involvement in a lawsuit that alleged the branch had become a “boys’ club” where sexist behaviour was rampant.
