IIROC announces penalty hearing for Georges Benarroch, Linda Kent, Marjorie Ann Glover and Credifinance Securities Limited

TORONTO, Feb. 8 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a penalty hearing for Georges Benarroch, Linda Kent, Marjorie Ann Glover and Credifinance Securities Limited.

An IIROC Hearing Panel penalty decision dated April 13, 2010 was reviewed by the Ontario Securities Commission (OSC). In its decision dated December 15, 2010, the OSC found that the reasons the IIROC Hearing Panel gave for its penalty decision were inadequate. On January 11, 2011, the OSC ordered that the matter be remitted to a newly constituted IIROC Hearing Panel for a penalty hearing.

The Hearing Panel will consider the appropriate penalty to be imposed based on an Agreed Statement of Facts and Violations.

Hearing Date:  February 16, 2011
Location:    ASAP Reporting Services
  333 Bay Street, Suite 900, Toronto, ON

The penalty hearing is open to the public, unless the panel orders otherwise. The panel's decision will be made available at www.iiroc.ca.

Specifically, in the Agreed Statement of Facts and Violations, the respondents admitted that from about January 2003 to about March 2006, they engaged in conduct unbecoming and detrimental to the public interest, contrary to IDA By-law 29.1 (now IIROC Rule 29.1) in the following counts.

  • Mr. Benarroch and Ms. Kent failed to perform their gatekeeper responsibilities regarding trading in client accounts in the shares of two companies, Magnum D'Or Resources Inc. and Osprey Gold Corp., and they also engaged in financial and business transactions with Credifinance clients in relation to the distribution and sale of shares in these companies.
  • Ms. Glover, while a Registered Representative and Chief Compliance Officer with Credifinance, failed to exercise due diligence and adequately supervise the conduct of Mr. Benarroch and Ms. Kent in their dealings with clients, particularly with regard to trading in Magnum and Osprey shares.
  • Credifinance failed in its gatekeeper role by failing to supervise the conduct of Mr. Benarroch and Ms. Kent and failing to supervise the transactions of their clients' accounts.

IIROC formally began its investigation into the conduct of Mr. Benarroch, Ms. Kent, Ms. Glover and Credifinance Securities in January 2004. The violations occurred when Mr. Benarroch, Ms. Kent and Ms. Glover were Registered Representatives with the Toronto branch of Credifinance Securities Ltd., an IIROC-regulated firm. Georges Benarroch and Linda Kent are no longer registered with an IIROC-regulated firm. Marjorie Ann Glover's registration is currently suspended. Effective March 2009, an IIROC Hearing Panel ordered the suspension of Credifinance Securities and that the firm immediately cease dealing with the public.

* * *

IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions and permanent bans or terminations for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1.877.442.4322.

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:

Jeff Kehoe
Vice President, Enforcement

Elsa Renzella
Director, Enforcement Litigation


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