IN THE MATTER OF Robert Mortimer Phillips - Set Date
MONTRÉAL,
The proposed 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 the Respondent:
(a) In January and February 2001, the Respondent, while a Registered Representative of a Member of the Association, effected four (4) unauthorized trades in the client account of "A" which generated a loss of roughly $39,000, contrary to By-Law 29.1; (b) Between January 2000 and December 2006, the Respondent, while a Registered Representative of a Member of the Association, admitted having personally covered the losses in the account of the client "B" resulting from his discretionary trading, contrary to By-Law 29.1; (c) Between January and December 2006, the Respondent, while a Registered Representative of a Member of the Association, made fifty (50) discretionary trades in the client account of "B" without the account having been approved and accepted as discretionary account and without the prior written authorization of the client, contrary to Association Regulation 1300.4 and By-Law 29.1; (d) Between January 2001 and April 2006, the Respondent, while a Registered Representative of a Member of the Association, made discretionary trading in the client accounts of "C" without having been duly registered or without having the prior written authorization of the client and the accounts having been approved and accepted in writing as discretionary accounts, contrary to Association Regulation 1300.4 and By-Law 29.1; (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: - making the client "C" believe that she was still receiving income from a bond of $100,000, knowing that the bond has been sold; - using the $100,000 bond to cover some discretionary trades made in the account, without the knowledge or the consent of the client; - putting his own money in the client account to cover the losses generated by his discretionary trading; (f) On or about November 19, 2000, the Respondent, while a Registered Representative of a Member of the Association, and as admitted by him during the investigation, forged the signature of the client "D" for an account guarantee agreement in favor of the account of "C", contrary to By-Law 29.1; (g) During the year 2004, the Respondent, while a Registered Representative of a Member of the Association, failed to observe high standards of ethics and engaged in conduct unbecoming and detrimental to the public interest, contrary to By-Law 29.1, by giving a personal guarantee to his client "E" regarding the result of the trades on a position and for reimbursing the client by personal cheques to cover the losses resulting from the transactions;
IIROC formally initiated the investigation into the Respondent's conduct on
The hearing is open to the public, unless the Hearing Panel orders otherwise.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in
For further information: Carmen Crépin, Vice President, Québec, (514) 878-2854, [email protected]; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, [email protected]
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