IIROC announces settlement with Konstantinos Georgeos Arapis

VANCOUVER, May 19 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement, with sanctions, between IIROC staff and Konstantinos Georgeos Arapis.

With this agreement, Mr. Arapis admits that he had clients participate in an off-book transaction and that he failed to ensure that certain trades were within the bounds of good business practice.

Mr. Arapis' penalty includes a $45,000 fine and $5,000 in costs. It also requires Mr. Arapis to re-write the Options Supervisors Course, followed by a 12-month period of close supervision for all options trading, with monthly reports to be filed with IIROC. During this period, he is prohibited from trading or advising in Level 4 Option accounts, which are accounts that have been approved for certain trading activities, including the right to buy and sell uncovered options. He was also given a six-month suspension from acting as a Supervisor.

Specifically, Mr. Arapis admits to:

  • Soliciting clients for a private placement of shares in a company in which he had an interest, contrary to IIROC Rule 29.1;
  • Effecting this transaction off-book and without his firm's knowledge, and receiving remuneration directly from the company, contrary to IIROC Rule 18.15; and
  • Effecting 111 option transactions in 23 client accounts which were outside the accounts' approved option level, contrary to IIROC Rule 1300.1(o).

The solicitation for the private placement occurred between June 2005 and November 2005. The option transactions in the client accounts occurred between May 14, 2008 and October 31, 2008.

IIROC began its investigation into Mr. Arapis' conduct in March 2009.  The violations occurred when he was a Registered Representative with Saskatoon branches of Assante Capital Management Inc. and Raymond James Ltd., both IIROC-regulated firms. Mr. Arapis is currently registered with a Saskatoon branch of Canaccord Genuity Corp., 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:

Warren Funt
Vice President, Western Canada
604.331.4750
wfunt@iiroc.ca
                    Elsa Renzella
Director, Enforcement Litigation
416.943.5877
erenzella@iiroc.ca

 


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