In The Matter Of Stéphane Rail - Penalty



    MONTREAL, Sept. 3 /CNW/ - Notice is hereby given that a hearing will be
held before a Hearing Panel of the Investment Dealers Association of Canada
(IDA) on Thursday, October 9, 2008, at 10 a.m. or as soon thereafter as
possible, at the Four Points by Sheraton, 475 Sherbrooke St. W., Montréal,
Québec, in the Mont Blanc Room, to determine the penalties to be imposed in
the matter of Stéphane Rail (the "Respondent").
    The proposed hearing concerns matters for which the Respondent may be
disciplined as a Registrant of the IDA, pursuant to Part 10 of IDA By-Law 20.
    The sanctions imposed pertain to findings that the Respondent, in 2000,
while employed as a Registered Representative of TD Securities Inc., engaged
in conduct unbecoming or detrimental to the public interest, contrary to IDA
By-law 29.1, in regard to the following events:

    
    (a)    having engaged in outside business activities without the consent
           and without the knowledge of the firm, by introducing one of his
           clients, HC, to another of his clients, LV, with the aim of
           facilitating the obtaining of a loan for LV, knowing that his firm
           had already determined that this loan was too risky and that such
           behaviour was not consistent with his responsibilities as a
           registered representative;

    (b)    having made inappropriate use of personal and confidential
           information regarding two clients, HC and LV by introducing them
           to one another in order to facilitate a financing project to
           benefit LV;

    (c)    having failed to use due diligence to make sure that the cheque
           made by P. Inc., dated September 14, 2000, in the amount of
           $333,000 and payable to COC, was properly invested in the account
           belonging to COC;

    (d)    having failed to use due diligence by creating an investors group,
           to which he belonged, for the purpose of investing over $150,000,
           when he knew or should have known, as a registered representative,
           that this stratagem constituted a means of illegally taking
           advantage of the provisions concerning the prospectus exemption
           stipulated in section 51 of the Québec Securities Act;

    (e)    having deposited in a personal capacity an amount of $48,112 in
           the account of his client RS, for the purpose of making a private
           investment;

    (f)    having deposited in a personal capacity an amount of $35,000 in
           the account of his client RS.
    

    The IDA formally initiated the investigation into the Respondent's
conduct on June 22, 2005. The violations occurred while the Respondent was a
Registered Representative at the Ste-Foy, Québec branch of TD Securities Inc.
Since 2002, Mr. Rail has worked as a branch manager with Canaccord Capital
Inc., suite 2940, 2600 Laurier Blvd., Ste-Foy, G1V 4M6.
    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.




For further information:

For further information: Carmen Crépin, Vice President, Québec, (514)
878-1625 or ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416)
943-6996 or jkehoe@iiroc.ca


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