IN THE MATTER OF Stéphane Rail - Penalty



    MONTREAL, Sept. 10 /CNW/ - Pursuant to decisions rendered on June 25,
2008 and January 7, 2009 by both a Hearing Panel and an Appeal Panel of the
Investment Industry Regulatory Organization of Canada (IIROC), Stéphane Rail
(the Respondent) has been found guilty of counts 1(a), 3, 4, 5 and 6:

    
    (a) on Count 1(a), for having, in the year 2000, engaged in conduct
        unbecoming or detrimental to the public interest, when the Respondent
        carried on outside business activities without the consent and
        without the knowledge of his firm;

    (b) on Count 3, for having, on or about September 18, 2000, failed to use
        due diligence relative to the deposit of a cheque in the amount of
        $333,000;

    (c) on Count 4, for having, in June and July 2000, failed to use due
        diligence and having engaged in conduct unbecoming and detrimental to
        the public interest, by creating an investors group, to which he
        belonged, for the purpose of investing over $150,000 in order to
        illegally take advantage of the prospectus exemption provisions;

    (d) on Count 5, for having, on or about June 22, 2000, engaged in conduct
        unbecoming and contrary to the public interest, by depositing in a
        personal capacity a sum of $48,112 in the account of his client, for
        the purpose of making a private investment;

    (e) on Count 6, for having, on or about July 18, 2000, engaged in conduct
        unbecoming and contrary to the public interest, by depositing in a
        personal capacity a sum of $35,000 in the account of his client;
    
    The guilty verdicts were published on July 22, 2008 and February 10,
2009.
    In a separate penalty decision dated August 12, 2009, the Hearing Panel
imposed the following penalties on the Respondent:

    
    (a) on Count 1(a), a fine in the amount of $35,000;

    (b) on Count 3, a fine in the amount of $40,000;

    (c) on Count 4, a fine in the amount of $35,000;

    (d) on Count 5, a fine in the amount of $10,000;

    (e) on Count 6, a fine in the amount of $10,000;

    (f) successful completion of the examination based on the Conduct and
        Practices Handbook Course within three months of the decision and;

    (g) continued close supervision of the Respondent by his employer until
        successful completion of the examination mentioned in paragraph (f).
    

    The Respondent is also ordered to pay costs in the amount of $25,000.
    IIROC 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,
the Respondent has worked in Ste-Foy, as a branch manager with Canaccord
Capital Inc., an IIROC-regulated firm.
    The decision and reasons of the Hearing Panel may be viewed at
www.iiroc.ca.

    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)
878-2854, ccrepin@iiroc.ca; Jeff Kehoe, Director, Enforcement, (416) 943-
6996, jkehoe@iiroc.ca


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