TORONTO, Feb. 12 /CNW/ - Notice is hereby given that a hearing will be held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), on Monday, February 22, 2010 at Legal Transcript Services, located at 390 Bay St., 11th floor, Toronto, Ontario, at 10:00 am or as soon thereafter as the hearing can be held, to consider whether, pursuant to section 20.36 of IIROC Dealer Member Rule 20, the Hearing Panel should accept a Settlement Agreement entered into between IIROC Staff and David Francis Shep (the "Respondent").
The subject matter of the proposed Settlement Agreement concerns allegations that:
1. (a) Between on or about November 4, 2002 and May 4, 2005, the
Respondent violated Association By-law 29.1 and engaged in conduct
unbecoming or detrimental to the public by:
(b) Failing to disclose that he was actively and closely involved in
the affairs of Second Stage Ventures Inc. (SSVT), subsequently
called Dermisonics Inc. (Dermisonics), a Nevada company whose
shares were traded on the National Association of Securities
Dealers' Over-the-Counter Bulletin Board (OTC BB);
(c) Facilitating trading creating a misleading appearance of increased
price and volume constituting manipulative and deceptive trading
(d) Providing account information to a person who was not authorized
in writing to receive such information for an account in the name
of Caledonia Corporate Management Group Ltd. (Caledonia); and
(e) Failing to carry out his duties as gatekeeper and facilitating
questionable activities in Caledonia's account.
2. On or about April 20, 2006, the Respondent violated Association By-
law 19.5 by answering questions untruthfully or incompletely that
were asked by Association Staff investigators with respect to the
extent of his involvement in SSVT/Dermisonics.
The IDA formally initiated the investigation into the Respondent's conduct on August 12, 2004. The violations occurred when the Respondent was a Registered Representative with the Toronto Branch of Desjardins Securities Inc. The Respondent is no longer a registrant with an IIROC-regulated firm.
The hearing is not open to the public unless and until the Settlement Agreement has been accepted by the Hearing Panel. If the Hearing Panel accepts the Settlement Agreement, the Hearing Panel's decision and reasons will be made available to the public.
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: Alex Popovic, Vice President, Enforcement, (416) 943-6904, email@example.com; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, firstname.lastname@example.org