IN THE MATTER OF Robert Mortimer Phillips - Discipline

MONTRÉAL, Jan. 27 /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 15, 2010 at 8:30 a.m., or as soon thereafter as the hearing can be held, at Carrefour Sherbrooke (Résidences universitaires McGill), 475 Sherbrooke St. W., Montréal, Québec, to hear evidence and submissions in the matter of Robert Mortimer Phillips (the Respondent).

The hearing concerns matters for which the Respondent may be disciplined as a Regulated Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.

The hearing concerns allegations that:

    
    (a) In January and February 2001, the Respondent, while a Registered
        Representative of a Member of the Association, made four (4)
        unauthorized transactions in the account of client A, which resulted
        in a gross loss of $39,000, contrary to By-law 29.1 of the
        Association;

    (b) Between January 2000 and December 2006, the Respondent, while a
        Registered Representative of a Member of the Association, admitted
        that he personally covered losses caused by discretionary trades
        which he effected in the account of client B, contrary to
        By-law 29.1;

    (c) Between January and December 2006, the Respondent, while a Registered
        Representative of a Member of the Association, effected fifty (50)
        discretionary trades in the account of client B, without such client
        account having been approved and accepted as a discretionary account
        and without the prior written authorization of the client, contrary
        to Regulation 1300.4 and to By-Law 29.1 of the Association;

    (d) Between January 2001 and April 2006, the Respondent, while a
        Registered Representative of a Member of the Association, effected
        discretionary trades in the accounts of client C, without the
        necessary registration or without the prior written authorization of
        the client, and without the client accounts having been approved and
        accepted in writing as discretionary accounts, contrary to Regulation
        1300.4 and to By-Law 29.1 of the Association;

    (e) Between January 2001 and April 2006, the Respondent, while a
        Registered Representative of a Member of the Association, failed to
        observe high standards of ethics and conduct and engaged in conduct
        unbecoming and detrimental to the public interest, contrary to
        By-law 29.1, by :

           -  leading client C to believe that she was still receiving income
              from a $100,000 bond, when he knew that the bond had been sold;

           -  using the $100,000 bond to cover certain discretionary trades
              effected in the client's account, without her knowledge or
              consent;

           -  injecting personal funds into the client account to cover the
              losses caused by his discretionary trading;

    (f) On or around November 19, 2000, the Respondent, while a Registered
        Representative of a Member of the Association, falsified the
        signature of client D, as was admitted during the investigation, on
        an account guarantee agreement in favour of the account of C,
        contrary to By-Law 29.1;

    (g) Over the course of 2004, the Respondent, while a Registered
        Representative of a Member of the Association, failed to observe high
        standards of ethics and conduct and engaged in conduct unbecoming and
        detrimental to the public interest, contrary to By-law 29.1, by
        giving client E his personal guarantee concerning the results of
        trades in a position, and by reimbursing the client with personal
        cheques to cover the losses that resulted from the trades.
    

IIROC formally initiated the investigation into the Respondent's conduct on November 26, 2006. The violations allegedly occurred while the Respondent was a Registered Representative at the Montréal branch of CIBC World Markets Inc. Mr. Phillips has not been a registrant with an IIROC-regulated firm since October 2006.

The Notice of Hearing is available at: www.iiroc.ca.

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: Carmen Crépin, Vice President, Québec, (514) 878-2854, ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, jkehoe@iiroc.ca


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