IIROC announces penalty for Hector Wong
TORONTO, Nov. 11 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has permanently suspended and barred Hector Wong from further registration in any capacity with IIROC. The penalty follows the panel's decision in which they found that Mr. Wong misappropriated funds from his employer through inappropriate trading of US treasury bills, contrary to IIROC Rule 29.1.
In issuing the penalty, the panel also imposed a fine of $100,000 and ordered Mr. Wong to pay $25,000 in costs.
The panel's Reasons for Decision were issued October 29, 2010 and are available on the IIROC website.
In an earlier hearing held on June 16, 2010, the panel found Mr. Wong misappropriated funds from his employer by purchasing several US treasury bills in his account from his firm's inventory account. The panel found that the treasury bills' prices were inappropriately low and had been set deliberately by Mr. Wong. When the US treasury bills matured they generated profits in two of his personal accounts that were inflated due to the mispricing of the purchases.
In the Reasons for Decision from the penalty hearing, dated October 29, 2010, the panel stated that Mr. Wong's actions were "intentional, deceitful, and intended to transfer to his account funds that did not belong to him. He knew what he was doing and the consequences of his actions." The panel also stated, "A clear message must be sent to the industry and to the respondent that misappropriation is a serious matter. Anything less than a permanent ban in this case would undermine industry expectations and imperil the trust and confidence in securities markets that is shaken when this kind of misappropriation occurs."
The violations occurred in or about September to December 2006, when Mr. Wong was an Officer (Trading, Resident) with the Toronto branch of Hampton Securities Limited, an IIROC-
regulated firm. IIROC began the investigation into Mr. Wong's conduct on May 29, 2007. He is no longer registered with an IIROC-regulated firm.
IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions and permanent bans or terminations for individuals and firms.
All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1.877.442.4322.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.
For further information: For further information:
Jeff Kehoe | Elsa Renzella | ||||||
Vice President, Enforcement | Director, Enforcement Litigation | ||||||
416.943.6996 | 416.943.5877 | ||||||
[email protected] | [email protected] |
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