CALGARY, Feb. 21, 2013 /CNW/ - On February 6, 2013, a Hearing Panel of
the Investment Industry Regulatory Organization of Canada (IIROC),
accepted a Settlement Agreement between IIROC staff and Gabriel Ka
Mr. Lee admitted that, without his firm's knowledge, he engaged in
outside business activities by facilitating off-book investments and
loans by eight clients in two separate companies. Mr. Lee also
admitted to borrowing funds from a client.
Specifically, Mr. Lee admitted to the following violations:
Between June 2008 and September 2011, Mr. Lee engaged in outside
business activities by facilitating off-book investments and/or loans
between eight clients and Asia Active Resources, without the knowledge
of his firm and without proper exemptions under the Securities Act (Alberta), contrary to Dealer Member Rule 29.1;
In 2009, Mr. Lee engaged in outside business activities by facilitating
off-book investments by three clients in Castle Rock Research
Corporation, without the knowledge of his firm, contrary to Dealer
Member Rule 29.1; and
In or about February 2011, Mr. Lee engaged in personal financial
dealings with a client without the knowledge or consent of his firm
when he borrowed $100,000 from a client, contrary to Dealer Member Rule
Pursuant to the Settlement Agreement, Mr. Lee agreed to the following
Mr. Lee agrees to pay a fine to IIROC in the amount of $75,000.00; and
Mr. Lee shall be prohibited from registration in any capacity for a
period of six months.
Mr. Lee also agreed to pay costs in the amount of $5,000.00.
The Settlement Agreement is available at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=42C7518E42B84565A11BEE75BA55F2F7&Language=en.
and the Decision will be made available at www.iiroc.ca.
Documents related to ongoing IIROC enforcement proceedings - including
Reasons and Decisions of Hearing Panels - are posted on the IIROC
website as they become available. Click here to search and access all IIROC enforcement documents
IIROC formally initiated the investigation into Mr. Lee's conduct in
September 2011. The conduct occurred when he was a Registered
Representative with the Edmonton branch of Richardson GMP Limited, an
IIROC-regulated firm. Mr. Lee is no longer a registrant with an
* * *
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.
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, permanent bars,
expulsion from membership, or termination of rights and privileges 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.
SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Western Canada
Public Affairs Specialist