CIRO hits rep with lifetime ban after used‑vehicle loans leave investors $9.8 million short
A former Quadrus rep who steered roughly $21.5m into an off‑book used‑vehicle lending scheme that collapsed has been permanently barred from the industry.
A Canadian Investment Regulatory Organization (CIRO) hearing panel found that Louis Josh Lieff engaged in securities‑related business outside his dealer by recommending, selling, or facilitating investments in a “purchase and resale of used vehicles” business between January and August 2021.
About 50 investors put in approximately $21.5m; they collectively lost about $9.8m when the vehicle business stopped making payments in August 2021.
Following a sanctions hearing on November 6, 2025, the panel ordered:
- a permanent prohibition from conducting securities‑related business while employed by or associated with any CIRO Dealer Member
- disgorgement of $238,073
- a $200,000 fine
- $15,000 in costs
The decision appears in Re Lieff 2025 CIRO 57, released December 16, 2025.
Lieff worked as a dealing representative with Quadrus Investment Services Ltd. in Ontario from 2014 until he resigned in January 2022.
During the relevant period, he introduced the used‑vehicle lending opportunity to friends and family, who then referred other investors.
He facilitated short‑term loans to the operator of the vehicle business, MC, and earned a spread between the return MC promised him and what he promised investors.
CIRO noted that none of the investments or related commissions went through Quadrus’ books and records, contrary to Mutual Fund Dealer Rules and firm policies that bar approved persons from selling or advising on securities outside the dealer.
In an agreed statement of facts, Lieff admitted he engaged in securities‑related business outside the Dealer Member by soliciting investors and facilitating investments in the purchase and resale of used vehicles business.
He also admitted that these facts amounted to misconduct for which the panel could impose penalties.
Lieff personally invested $150,000, received $10,750 in interest, and lost $139,250.
He earned about $2m in commissions from the activity, frequently reinvested those amounts, and ultimately retained net commissions of $670,468, including an expensive luxury vehicle.
He voluntarily repaid $432,395 to investors, leaving $238,073 that the panel has now ordered disgorged.
In 2023, MC pleaded guilty to three counts of defrauding three individuals of more than $5,000 each in relation to the vehicle business and admitted he did not actually use their money to buy and resell vehicles.
The panel accepted that there was no evidence Lieff knew about or participated in MC’s fraud, but found his undisclosed off‑book activity "goes to the heart" of the mutual fund dealer regime and warranted a permanent bar and substantial financial sanctions.
The violations occurred while Lieff was registered with Quadrus in Concord, Ontario.
He is not currently registered in the securities industry in any capacity.
