VANCOUVER, Oct. 28 /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, June 21, 2010, at UBC Robson Square, located at 800 Robson Street, Vancouver, BC, at 10:00 a.m. or as soon thereafter as possible, to hear evidence and submissions in the matter of Dean Shannon Duke (Duke) and Blackmont Capital Inc. (Blackmont).
The proposed hearing concerns matters for which Duke may be disciplined as an Approved Person of IIROC and Blackmont may be disciplined as an Approved Member Firm, pursuant to Part 10 of IIROC Dealer Member Rule 20.
The hearing concerns allegations that:
(a) Between January 2003 and March 2007, Blackmont and its predecessor
firm, First Associates investments Inc., at all times Member Firms,
and Duke, a Registered Representative with Blackmont or its
predecessor firms, entered into and participated in an arrangement
which involved the payment of commissions to a third party who placed
orders in the accounts of seven clients without disclosing the
details and the existence of the arrangements to the clients,
contrary to Rule 29.6 (then By-law 29.6) and/or Rule 29.1 (then By-
(b) Between January 2003 and October 2007, Duke and Blackmont effected
trades in the accounts of clients based on the instructions of a
third party without the existence of a duly executed trading
authorization, contrary to Rule 200.1(i)(3) (then Regulation 200.1(i)
(c) Between January 2003 and October 2007, Blackmont failed to obtain:
- Corporate records which indicate the power to bind a corporate
- Signature documentation; and
- Identity verification for authorized trading individuals
required pursuant to the Proceeds of Crime (Money Laundering) and
Terrorist Financing Regulations in respect of seven client accounts and
thereby engaged in conduct that is detrimental to the public interest,
contrary to Rule 29.1 (then By-law 29.1).
IIROC formally initiated the investigation into Duke's and Blackmont's conduct on December 4, 2007. The violations occurred when Duke was a Registered Representative with the 550-500 Burrard Street Branch of Blackmont. Duke is currently registered with the 609 Granville Street Branch of Canaccord Capital Corporation, an IIROC-regulated firm. Blackmont is currently registered as an IIROC Dealer Member Firm.
The Notice of Hearing is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=EC121B99A9C043C4A618E7AD0D7BA7C0&Language=en.
The hearing is open to the public, unless the Hearing Panel orders otherwise. 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: Warren Funt, Vice President, Western Canada, (604) 331-4750, email@example.com; Jeff Kehoe, Director, Enforcement, (416) 943-6996, firstname.lastname@example.org