IDA Hearing Panel fines Jeffrey Bradford Kasman and Clinton Anderson $25,000 each and suspends both from approval for two months



    TORONTO, March 13 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada (IDA) appointed pursuant to By-law 20 imposed discipline
penalties on Jeffrey Bradford Kasman and Clinton Anderson, at all material
times Approved Persons with the Toronto branch of Desjardins Securities Inc.,
an IDA Member firm.
    In a decision released on November 15, 2007, the Hearing Panel ruled that
Mr. Kasman and Mr. Anderson violated By-law 29.1 by facilitating manipulative
and/or deceptive trading in the shares of American Motorcycle Corporation
(AMCY).

    
    For their misconduct, the following sanctions were imposed following a
penalty hearing on February 6, 2008:

    -   Mr. Kasman and Mr. Anderson are each suspended from approval for
        two months;
    -   Mr. Kasman and Mr. Anderson shall each pay a $25,000 fine;
    -   Mr. Kasman and Mr. Anderson shall each re-write and pass the
        examination based on the Conduct and Practices Handbook within one
        year; and
    -   Mr. Kasman and Mr. Anderson are to pay $40,000 in costs on a joint
        basis.
    

    The Hearing Panel found that, "The conduct of the Respondents in this
case was unacceptable. Their dereliction of duty was inexcusable. They did not
just misperform their "know your client" and "due diligence" obligations, they
failed utterly to perform them at all... The respondents' conduct facilitated
the market manipulation. Market manipulation is extremely detrimental to the
reputation and integrity of the capital markets even where there is no
evidence of direct harm to anyone".
    The Hearing Panel said that a two-month suspension was appropriate in
this case if balanced with meaningful financial sanctions, taking into account
Mr. Kasman's and Mr. Anderson's financial circumstances. The Hearing Panel
noted that the financial burden of $45,000, when considered with the
substantial legal expenses they incurred in defending this matter, will have a
meaningful, yet appropriate, financial impact on the respondents. The Hearing
Panel also referred to the following mitigating factors in their decision: (i)
the period of time of the manipulation was relatively short; (ii) the
respondents did not plan, organize or participate through personal trading in
the manipulation; (iii) the dollar value of the transactions was relatively
minor; (iv) there was no evidence of harm to the respondents' employer or a
third party; (v) the respondents received no training or supervisory support;
(vi) the respondents have no prior disciplinary record; (vii) there was no
evidence that the respondents have not been model employees and sales
representatives since the time of the trading; (viii) the respondents did not
hold positions of responsibility over others; (ix) the respondents have not
been "high" earners in the industry; and (*) the gross value of commissions
earned by the respondents from the trading in question was approximately
$14,000.
    Mr. Kasman and Mr. Anderson are currently registered representatives at
the Toronto office of Research Capital Corporation, an IDA Member firm.
    The IDA would like to thank the Ontario Securities Commission, the
Securities and Exchange Commission and the National Association of Securities
Dealers (now the Financial Industry Regulatory Authority) for their assistance
in this case.

    The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
role. It is IDA policy to ensure that where relevant, referrals to the
appropriate policing authority are made.





For further information:

For further information: Alex Popovic, Vice-President, Enforcement,
(416) 943-6904 or apopovic@ida.ca; Jeff Kehoe, Director, Enforcement
Litigation, (416) 943-6996 or jkehoe@ida.ca

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IDA

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INVESTMENT DEALERS ASSOCIATION OF CANADA

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