TORONTO, May 25 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a $200,000 fine and a permanent ban from registration on Ian Douglas Sauder for a series of related violations which include falsifying documents, forgery and unauthorized trading in client accounts.
The penalty includes an order for Mr. Sauder to pay costs of $25,000. The permanent ban involves registration "in any capacity in situations over which IIROC has jurisdiction."
The penalty decision follows a disciplinary hearing held on May 3, 2010 in Toronto where the Hearing Panel found that Mr. Sauder:
i. Produced falsified monthly client account statements that
misrepresented holdings and activity;
ii. Forged clients' signatures on account documents and instructions
without client knowledge or consent;
iii. Conducted eight unauthorized transactions in client accounts;
iv. Concealed from his employer the fact a client was his spouse and
misrepresented that relationship to his employer in a document;
concealed that he was a beneficial owner of that account then
controlled and conducted transactions in it; and
v. Refused and/or failed to attend and give information in an IIROC
Most of the violations occurred between 2005 and 2008 and are counts where Mr. Sauder engaged in conduct unbecoming and/or detrimental to the public interest, contrary to IIROC Rule 29.1 as well as know your client provisions under Rule 1300.1 (b). Mr. Sauder's failure to cooperate is a violation of IIROC Rule 19.5.
IIROC began its investigation into Mr. Sauder's conduct on April 15, 2009 when he was a Registered Representative with the Toronto Branch of Union Securities Ltd., an IIROC-regulated firm. Mr. Sauder has not been a registrant with an IIROC-regulated firm since January, 2009.
Mr. Sauder's conduct "caused harm and a great deal of anxiety" to clients and "compromised the reputation and integrity of Union Securities," the panel noted in its Decision and Reasons, which were issued on May 14, 2010.
"And most importantly, (his conduct) offended the foundation of trust on which the securities industry relies. (The scheme) took place over an extended period of time; it was manipulative, fraudulent and deceptive."
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: For further information: Jeff Kehoe, Acting Vice President, Enforcement, (416) 943-6996, firstname.lastname@example.org