IN THE MATTER OF David Martin - Settlement

VANCOUVER, March 12 /CNW/ - On December 18, 2009, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and David Harry Martin (the "Respondent"). According to the Settlement Agreement, the Respondent admitted that:

FINDING No. 1

During January 2007, the Respondent failed to observe high standards of ethics and conduct in the transaction of his business and engaged in conduct unbecoming a registrant and/or detrimental to the public interest by failing to give twenty five (25) of his clients priority when entering trades for himself and his clients in P .Ltd. and M. Corp., contrary to IDA By-law 29.1;

FINDING No. 2

During January 2007, the Respondent failed to observe high standards of ethics and conduct in the transaction of his business and engaged in conduct unbecoming a registrant and/or detrimental to the public interest when, after making an error, the Respondent allocated losses to twenty five (25) of his clients, contrary to IDA By-law 29.1;

FINDING No.3

Between January 10 and 26, 2007, the Respondent effected four (4) discretionary transactions in the account of S.H., without the prior written authorization of S.H., and without the S.H. account being specifically approved and accepted in writing as a discretionary account, contrary to IDA Regulation 1300.4;

FINDING No.4

Between January 15 and 31, 2007, the Respondent effected four (4) discretionary transactions in the account of T.P., without the prior written authorization of T.P., and without the T.P. account being specifically approved and accepted in writing as a discretionary account, contrary to IDA Regulation 1300.4;

FINDING No.5

Between January 10 and February 6, 2007, the Respondent effected seven (7) discretionary transactions in the account of P.S., without the prior written authorization of P.S., and without the P.S. account being specifically approved and accepted in writing as a discretionary account, contrary to IDA Regulation 1300.4;

FINDING No.6

Between July 29, 2004 and April 13, 2007, the Respondent failed to exercise due diligence to learn and remain informed of the essential facts relative to his client, P.S., contrary to IDA Regulation 1300.1(a);

FINDING No.7

Between January and February 2007, the Respondent failed to observe high standards of ethics and conduct in the transaction of his business and engaged in conduct unbecoming a registrant and/or detrimental to the public interest by effecting five (5) trades in the account of L.L. on the instructions of a third party without a duly executed trading authorization, contrary to IDA By-law 29.1; and

FINDING No.8

During February and/or March 2006, the Respondent engaged in outside business activity, by providing consulting services to T. Ltd., without disclosing the activity to his Member firm employer, conduct of which is unbecoming a registrant and/or detrimental to the public interest, contrary to IDA By-law 29.1.

The Hearing Panel noted that the Respondent incurred significant financial consequences as his firm already imposed sanctions and the recovery of client losses on the Respondent in the amount of $139,737.20.

The Hearing Panel imposed the following penalties against the Respondent:

    
    (a)    For Findings 1 to 8 inclusive - A reprimand from the Hearing
           Panel.

    (b)    The Respondent shall pay costs in the amount of $5,000.00.
    

The IDA formally initiated the investigation into the Respondent's conduct on November 19, 2007. The violations occurred when the Respondent was a Registered Representative with the Calgary, Alberta Branch of CIBC World Markets Inc. The Respondent is still a Registered Representative with CIBC World Markets Inc. in Calgary, Alberta, an IIROC-regulated firm.

The Hearing Panel issued its Reasons and Decision on February 17, 2010. The Settlement Agreement and the Hearing Panel's Decision and Reasons are available 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.

SOURCE Investment Industry Regulatory Organization of Canada (IIROC) - General News

For further information: For further information: Warren Funt, Vice President, Western Canada, (604) 331-4750, wfunt@iiroc.ca; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, jkehoe@iiroc.ca


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