In the matter of André Bergeron - Discipline



    MONTREAL, Oct. 27 /CNW/ - Following a disciplinary hearing held on
March 26 and 27, April 16, 17 and 29, and May 2, 5 and 9, 2008, in Montreal,
Quebec, a Hearing Panel of the Investment Industry Regulatory Organization of
Canada (IIROC) has found André Bergeron (the Respondent) guilty as follows:

    
    1.  Count 2: Between November 2001 and May 2002, the Respondent, while
        employed as a registered representative at Desjardins Securities
        Inc., a Member firm of the Association, engaged in business conduct
        or practice unbecoming, failed in his duty to protect the public and
        showed wilful blindness, contrary to Association By-law 29.1, by
        systematically opening 47 new delivery-against-payment accounts with
        Desjardins Securities Inc. for accounts held with B2B Trust, at the
        request of a third party, without having met or spoken with each of
        the clients, although he knew or should have known that the
        circumstances surrounding the new client applications were or could
        be an indication of suspicious activity or activity contrary to the
        interests of the clients;

    2.  Count 4: Between November 2001 and May 2002, the Respondent, while
        employed as a registered representative at Desjardins Securities
        Inc., a Member firm of the Association, engaged in business conduct
        or practice unbecoming or detrimental to the public interest,
        contrary to Association By-law 29.1, by failing to advise 47 clients
        for whom he had opened delivery-against-payment accounts with
        Desjardins Securities Inc. for accounts held with B2B Trust, in the
        following circumstances:

        (a) upon the purchase of private placements by two of his clients
            while he was employed as their registered representative and
            although he knew or should have known that the circumstances
            surrounding such private placements were or could be an
            indication of suspicious activity or activity contrary to the
            interests of the said clients;

        (b) by holding accounts, most of which contained private investments
            purchased by his clients, when he knew or should have known that
            the circumstances surrounding these private investments were or
            could be an indicator of suspicious activity or activity contrary
            to the clients' interest.

    3.  As regards Count 1, which alleged that the Respondent had failed,
        between November 2001 and May 2002, to use due diligence to learn and
        remain informed of the essential facts relative to the identity of
        45 new clients, when he opened delivery-against-payment accounts with
        Desjardins Securities Inc. for accounts held with B2B Trust without
        having met the clients, contrary to Regulation 1300.1(a) and in
        conjunction with Association By-law 29.1, the Hearing Panel found the
        Respondent not guilty.

    4.  The Panel also found the Respondent not guilty on Count 3, which
        alleged that, between November 2001 and May 2002, while employed as a
        registered representative at Desjardins Securities Inc., a Member
        firm of the Association, the Respondent engaged in business conduct
        or practice unbecoming or detrimental to the public interest,
        contrary to Association By-law 29.1, by acting as a registered
        representative in 47 off-book accounts with B2B Trust, the
        approximate value of which was equal to $1,418,256.00, without the
        knowledge or consent of Desjardins Securities Inc.

    The Hearing Panel published its decision and reasons on July 30, 2008. In
a separate decision on penalty dated October 3, 2008, the Hearing Panel
imposed the following penalties on the Respondent:

    (a) On Count 2, a fine of $25,000, payable within a maximum of three (3)
        years;

    (b) On Count 4, a fine of $25,000, payable within a maximum of three (3)
        years;

    (c) Payment of a minimum sum of $12,500 per year, effective the date of
        this decision, for all of the monetary penalties;

    (d) Suspension of approval as an authorized representative for a period
        of twelve (12) months from the date of service of this decision on
        the Respondent;

    (e) Successful completion of the Conduct and Practices Handbook
        examination, before the Respondent may reapply for approval as an
        authorized representative;

    (f) If the Respondent is granted such approval as an authorized
        representative, the obligation that he be under close supervision for
        a period of three (3) years following his reapproval.

    (g) "Close supervision" reports shall be filed monthly for the full
        duration of the supervision.
    

    The Hearing Panel also ordered the Respondent to pay part of the costs
incurred by IIROC, in the amount of $25,000, payable within a maximum of three
(3) years;
    The IDA formally initiated the investigation into the Respondent's
conduct on October 13, 2005. The contraventions occurred while the Respondent
was a registered representative at a branch of Desjardins Securities Inc.
located at 5 Complexe Desjardins, suite 247, in Montreal.
    The Respondent is no longer approved as a registered representative with
any IIROC-regulated firm.
    The decision and reasons of the Hearing Panel may be viewed at
www.iiroc.ca.

    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.





For further information:

For further information: Carmen Crépin, Vice President, Québec, (514)
878-1625 or ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416)
943-6996 or jkehoe@iiroc.ca


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