IIROC announces penalty hearing for Shaun Gerard McErlean

TORONTO, Nov. 29, 2011 /CNW/ - A penalty hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to determine the penalty to be imposed in the matter of Shaun Gerard McErlean.

The Hearing Panel will consider the appropriate penalty to be imposed as a result of its Decision and Reasons dated October 31, 2011, which found Mr. McErlean provided falsified account documents to clients, misrepresented investment information to clients about their accounts, conducted discretionary trading, and personally compensated his clients for losses in their accounts without the knowledge or approval of his firm contrary to IIROC Rules 29.1 and 1300.4.

Hearing Date:     January 27, 2012, 10:00 am
   
Location: Legal Transcript Services
  350 Bay Street, 7th floor
  Toronto, Ontario

The penalty hearing is open to the public, unless the Hearing Panel orders otherwise. The panel's decision and reasons dated October 31, 2011 are available at:

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=54B90BB3437344F3B69671D0A5A2A889&Language=en

The decision and reasons on penalty will be made available to the public at www.iiroc.ca.

Specifically, the hearing panel found that Mr. McErlean committed the following breach of the IIROC Rules:

  1. From January 2008 to January 2009 Mr. McErlean engaged in business conduct that is unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1 and its predecessor IDA by-law 29.1 in that he:
    (i) provided falsified account documents to two clients; and
    (ii) misrepresented investment information to two clients about their accounts.
  2. From July 2005 to January 2009 Mr. McErlean made discretionary trades in the account of his client MR without first having the client's written authorization or having the account approved as discretionary by his firm, contrary to IIROC Dealer Member Rule 1300.4 and its predecessor IDA Regulation 1300.4.
  3. Between December 2008 and January 2009, Mr. McErlean personally compensated two of his clients for losses in their accounts without the knowledge or approval of his Member firm, contrary to IIROC Dealer Member Rule 29.1.

IIROC formally initiated the investigation into Mr. McErlean's conduct in March, 2009. The violations occurred when Mr. McErlean was a Registered Representative with the Toronto branch of CIBC World Markets, an IIROC regulated firm. Mr. McErlean is no longer a registrant 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.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information:

Jeff Kehoe
Vice President, Enforcement                    
416 943-6996
jkehoe@iiroc.ca
Elsa Renzella
Director, Enforcement Litigation
416 943-5877
erenzella@iiroc.ca


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