IN THE MATTER OF Michael Scott Leigh - Penalty

TORONTO, Dec. 21 /CNW/ - Following a penalty hearing held on December 3, 2009, in Toronto, Ontario, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted that Michael Scott Leigh (the "Respondent") admitted the following contraventions:

    
    (a) In or about August of 2005, the Respondent, at all material times a
        Registered Representative ("RR"), engaged in conduct unbecoming or
        detrimental to the public interest in that he sought and accepted a
        personal loan from his clients WH and SH without the knowledge,
        consent or authorization of his employer, a Member firm, contrary to
        Association By-Law 29.1; and

    (b) During the period from August of 2005 until December 2005, the
        Respondent, at all material times a Registered Representative,
        engaged in conduct unbecoming or detrimental to the public interest
        in that he paid back a personal loan to the Hs in part by
        gains/profits made in the H's account that they were nevertheless
        entitled to and by discounting his commissions, contrary to By-Law
        29.1; and

    (c) During the period from September 2004 to September 2006, the
        Respondent, at all material times a Registered Representative,
        engaged in conduct unbecoming or detrimental to the public interest
        in that he carried out unauthorized trading in the accounts of his
        clients, the Rs and Cs, without their prior knowledge or consent,
        contrary to Association By-law 29.1; and

    (d) During the period from August, 2004 until September, 2006, the
        Respondent, at all material times a Registered Representative, failed
        to know his clients and engaged in unsuitable trading in that he
        failed to use due diligence to ensure that the recommendations he
        made to the Rs were suitable based on their actual financial
        situation, limited investment knowledge and experience, actual
        investment objectives and/or risk tolerance when trading in their
        joint margin account, contrary to Association Regulation 1300.1 (a)
        and (q).

    At the conclusion of the penalty hearing, the Hearing Panel imposed the
following penalty against the Respondent:

    (a) The Respondent be suspended from approval with IIROC for a period of
        10 years, effective immediately;
    (b) The Respondent pay a fine to IIROC in the amount of $70,000;
    (c) The Respondent pay investigation and prosecution costs to IIROC in
        the amount of $36,000;
    (d) The Respondent be required to re-write the CPH examination prior to
        applying for re-approval following the completion of the suspension;
        and
    (e) In the event that the Respondent is again registered as an approved
        person, it will be a condition of such registration that he be
        subject to a period of strict supervision for the first 12 months of
        his employment as an approved person.
    

IDA formally initiated the investigation into the Respondent's conduct on July 27, 2006. The violations occurred when the Respondent was a Registered Representative with the TD Waterhouse, Oshawa branch. The Respondent is no longer a registrant with an IIROC regulated firm.

The Hearing Panel's written Decision and Reasons will follow.

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, apopovic@iiroc.ca; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, jkehoe@iiroc.ca


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