IN THE MATTER OF Vincenzo Farruggia - Discipline



    MONTREAL, Oct. 7 /CNW/ - Notice is hereby given that a hearing will be
held before a Hearing Panel of the Investment Dealers Association of Canada
("IDA"), on November 27 and 28, 2008, at 10:00 a.m. or as soon thereafter as
possible, at the Four Points by Sheraton, 475 Sherbrooke St. W., Montréal,
Québec, Olympus Room, to hear evidence and submissions in the matter of
Vincenzo Farruggia (the "Respondent").
    Following a decision by which the Hearing Panel rejected a motion for a
stay of the disciplinary proceedings and ordered that the disciplinary hearing
in the matter should proceed, a new hearing date was set. The decision to
reject the motion for a stay of the proceedings is currently the subject of an
application for review.
    The 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 hearing concerns allegations that:

    Count 1

    Between February 2000 and September 2001, the Respondent placed himself
in a conflict of interest by engaging in personal financial dealings with his
client DA, notably by making personal loans to the latter on three (3)
occasions for sums totalling $65,000, without the knowledge or authorization
of his employer, thereby engaging in conduct unbecoming contrary to
Association By-law 29.1.

    Count 2

    Between July 1999 and January 2002, the Respondent placed himself in a
conflict of interest by engaging in personal financial dealings with his
client NM, notably by remitting to the latter thirty-nine (39) personal
cheques in different amounts totalling $628,400, without the knowledge or
authorization of his employer, thereby engaging in conduct unbecoming contrary
to Association By-law 29.1.

    Count 3

    Between May 1999 and August 2001, the Respondent placed himself in a
conflict of interest by engaging in personal financial dealings with his
client BP, notably by remitting to the latter four (4) personal cheques for
sums totalling $50,000, without the knowledge or authorization of his
employer, thereby engaging in conduct unbecoming contrary to Association
By-law 29.1.

    Count 4

    Between October 1999 and December 2001, the Respondent placed himself in
a conflict of interest by engaging in personal financial dealings with his
client FC, notably by receiving from the client and from a company in which
the latter held a substantial interest, various sums totalling $180,000, and
by paying FC, directly or through the company held by the Respondent, various
sums totalling $78,000, without the knowledge or authorization of his
employer, thereby engaging in conduct unbecoming contrary to Association
By-law 29.1.

    Count 5

    Between December 1998 and January 2000, the Respondent placed himself in
a conflict of interest by engaging in personal financial dealings with his
client DM, notably by remitting to the latter four (4) bank drafts for amounts
totalling $62,500, three (3) of which while he was in the employ of NBF,
without the knowledge or authorization of his employer, thereby engaging in
conduct unbecoming contrary to Association By-law 29.1.

    Count 6

    Between August 1999 and October 2001, the Respondent placed himself in a
conflict of interest by engaging in personal financial dealings with his
client JM, notably by receiving from the latter, or from a company controlled
by him, various sums totalling $36,000 and by paying JM, indirectly through
this company, sums totalling $90,000, without the knowledge or authorization
of his employer, thereby engaging in conduct unbecoming contrary to
Association By-law 29.1.

    Count 7

    In December 1998, the Respondent obtained a sum of $130,000 from ShB, the
client of SB, a representative of another broker with whom he was acquainted,
with the promise of a high return, and received this investment without
opening a client account for ShB and without in any way documenting the
investment or entering it in the appropriate records, all without the
knowledge of his employer, thereby engaging in conduct unbecoming contrary to
Association By-law 29.1;

    Count 8

    In March 2002, the Respondent obtained a sum of $140,000 from SB, a
representative of another broker, which investment included a sum of $40,000
which she herself had obtained from her client TB with the promise of a high
return, and agreed to accept this investment without opening a client account
for SB or TB, and without in any way documenting this investment or entering
it in the appropriate records, all without the knowledge of his employer,
thereby engaging in conduct unbecoming contrary to Association By-law 29.1;

    Count 9

    Between December 1998 and October 2001, with the collaboration of or
through the representative of another broker, the Respondent engaged in
several questionable financial transactions, notably by using the
representative's bank account to effect transactions indirectly, without being
able to provide a reasonable or credible explanation for said transactions,
thereby failing to observe high standards of ethics and conduct, contrary to
Association By-law 29.1.

    The violations occurred while the Respondent was a Registered
Representative with approval to trade in options, commodities futures or
commodities futures options, first in the employ of Merrill Lynch Canada Inc.,
an IDA Member firm, then, as of February 1999, in the employ of National Bank
Financial Inc., another IDA Member firm, at its head office branch in
Montréal, Québec. Vincenzo Farruggia is not currently approved as a registered
representative with any IIROC-regulated firm.
    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.





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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