IN THE MATTER OF Dean Shannon Duke and Blackmont Capital Inc. - Discipline
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- law 29.1); (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) (3)); (c) Between January 2003 and October 2007, Blackmont failed to obtain: - Corporate records which indicate the power to bind a corporate client; - 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
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
For further information: Warren Funt, Vice President, Western Canada, (604) 331-4750, [email protected]; Jeff Kehoe, Director, Enforcement, (416) 943-6996, [email protected]
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