OSC Order Reveals Alleged Fraud at Arquette Insurance & Wealth Management

Toronto, ON – November 10, 2025 – The Ontario Securities Commission (OSC) has issued an order extending a temporary cease trade order against Adam Joseph Arquette and his firm, Arquette Insurance & Wealth Management (AIWM), following allegations of unregistered trading, fraud, and the potential mismanagement of over $100 million in investor funds. The case highlights the risks of dealing with unregistered investment advisors and the importance of verifying credentials before entrusting financial assets.

According to OSC documents, Arquette and AIWM are accused of soliciting investments from clients for management without being registered with the OSC, charging approximately 2.5% of client investments in fees. The regulator alleges that over 300 client accounts belonging to more than 100 investors were potentially affected. The OSC initiated the investigation after receiving investor complaints and uncovering irregularities in trading practices.

“This case serves as a critical reminder to investors that registration is not merely a bureaucratic hurdle, but a vital safeguard protecting their interests,” said a source familiar with the investigation. “Operating outside the regulatory framework creates opportunities for abuse and puts investor funds at serious risk.”

Allegations Detail Misconduct and Co-mingling of Funds

The OSC alleges a pattern of misconduct, including the co-mingling of client funds with Arquette’s personal accounts, concealment of trading losses, and misrepresentation of account values. The regulator alleges that Arquette prevented clients from receiving direct brokerage statements, making it difficult for them to independently verify their account balances and performance.

“The allegations paint a disturbing picture of a deliberate scheme to deceive investors and enrich oneself at their expense,” a market analyst commented. “The fact that the firm allegedly continued to solicit new clients despite the ongoing investigation is particularly concerning.”

Unregistered Activity and Lack of Oversight

A key aspect of the case is the fact that neither Arquette nor AIWM were registered with the OSC to trade securities. This lack of registration meant that the firm was not subject to the same level of scrutiny and oversight as registered investment advisors, potentially allowing the alleged misconduct to go undetected for a longer period.

“The OSC’s investor alert is crucial,” stated a legal expert specializing in securities litigation. “It serves as a warning to anyone who may have been approached by Arquette or AIWM. Investors need to understand that if a firm isn’t registered, they lack the protections afforded by securities regulations.”

Social Media Raises Red Flags

The OSC’s investigation has been corroborated by growing concerns expressed on social media. Recent posts on online investment forums have accused Arquette of fraudulent activity, with some users claiming they had lost significant sums of money through the firm. One Reddit user, posting under a pseudonym, alleged that Arquette presented himself as a licensed financial advisor despite lacking the necessary credentials.

“The online chatter should have been a warning sign to regulators, and potentially to investors,” said a cybersecurity analyst specializing in financial fraud. “Social media can often provide valuable insights into potential wrongdoing.”

Investor Impact and Regulatory Response
The OSC has urged investors who may have been affected by the alleged fraud to contact its Inquiries and Contact Centre. The regulator is currently exploring all available legal remedies, including potential sanctions and enforcement actions against Arquette and AIWM.

“The OSC takes these allegations very seriously,” a spokesperson for the regulator said in a statement. “Protecting investors is our top priority, and we will take all necessary steps to hold those who engage in fraudulent activity accountable.”

Broader Implications for the Wealth Management Industry

The Arquette case highlights a growing trend of unregistered individuals and firms offering wealth management services, often leveraging social media and online platforms to attract clients. The rise of these “shadow advisors” poses a significant risk to investors, as they lack the regulatory oversight and investor protections afforded by registered firms.

“This case underscores the need for increased regulatory scrutiny of the wealth management industry, particularly in the online space,” said a policy analyst specializing in financial regulation. “Regulators need to adapt to the changing landscape and find new ways to protect investors from fraudulent activity.”

Due Diligence: A Critical Step for Investors

Financial experts emphasize the importance of conducting thorough due diligence before entrusting financial assets to any investment advisor or firm. This includes verifying registration status with the appropriate regulatory authorities, checking for any disciplinary actions or complaints, and understanding the firm’s fee structure and investment strategy.

“Investors need to be proactive and take responsibility for their own financial security,” said a certified financial planner. “Don’t be afraid to ask questions, do your research, and seek independent advice.”

The OSC’s investigation into Arquette Insurance & Wealth Management is ongoing. Investors are encouraged to check the OSC website (www.osc.gov.on.ca) for updates and information on how to file a complaint. This case serves as a stark reminder of the risks associated with unregistered investment advisors and the importance of protecting oneself from financial fraud.