TORONTO, Feb. 8 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of
Canada (IIROC) has scheduled a penalty hearing for Georges Benarroch,
Linda Kent, Marjorie Ann Glover and Credifinance Securities Limited.
An IIROC Hearing Panel penalty decision dated April 13, 2010 was reviewed by the Ontario Securities Commission
(OSC). In its decision dated December 15, 2010, the OSC found that the reasons the IIROC
Hearing Panel gave for its penalty decision were inadequate. On January
11, 2011, the OSC ordered that the matter be remitted to a newly
constituted IIROC Hearing Panel for a penalty hearing.
The Hearing Panel will consider the appropriate penalty to be imposed
based on an Agreed Statement of Facts and Violations.
February 16, 2011
ASAP Reporting Services
333 Bay Street, Suite 900, Toronto, ON
The penalty hearing is open to the public, unless the panel orders
otherwise. The panel's decision will be made available at www.iiroc.ca.
Specifically, in the Agreed Statement of Facts and Violations, the
respondents admitted that from about January 2003 to about March 2006,
they engaged in conduct unbecoming and detrimental to the public
interest, contrary to IDA By-law 29.1 (now IIROC Rule 29.1) in the following counts.
Mr. Benarroch and Ms. Kent failed to perform their gatekeeper
responsibilities regarding trading in client accounts in the shares of
two companies, Magnum D'Or Resources Inc. and Osprey Gold Corp., and
they also engaged in financial and business transactions with
Credifinance clients in relation to the distribution and sale of shares
in these companies.
Ms. Glover, while a Registered Representative and Chief Compliance
Officer with Credifinance, failed to exercise due diligence and
adequately supervise the conduct of Mr. Benarroch and Ms. Kent in their
dealings with clients, particularly with regard to trading in Magnum
and Osprey shares.
Credifinance failed in its gatekeeper role by failing to supervise the
conduct of Mr. Benarroch and Ms. Kent and failing to supervise the
transactions of their clients' accounts.
IIROC formally began its investigation into the conduct of Mr.
Benarroch, Ms. Kent, Ms. Glover and Credifinance Securities in January
2004. The violations occurred when Mr. Benarroch, Ms. Kent and Ms.
Glover were Registered Representatives with the Toronto branch of
Credifinance Securities Ltd., an IIROC-regulated firm. Georges
Benarroch and Linda Kent are no longer registered with an
IIROC-regulated firm. Marjorie Ann Glover's registration is currently
suspended. Effective March 2009, an IIROC Hearing Panel ordered the
suspension of Credifinance Securities and that the firm immediately
cease dealing with the public.
* * *
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.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News
For further information:
Vice President, Enforcement
Director, Enforcement Litigation