IIROC announces penalty hearing for Kenneth Nott, Aidin Sadeghi, Christopher Kaplan, Robert Nemy and Jake Poulstrup

TORONTO, Jan. 7 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has scheduled a penalty hearing in the matter of Kenneth Nott, Aidin Sadeghi, Christopher Kaplan, Robert Nemy and Jake Poulstrop.

Penalty Hearing Date:      January 26, 2011, 10 am
Location: JRP Meeting Rooms
390 Bay Street, 3rd floor
Hearing Room C
Toronto, ON

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

In its decision referred to in a December 20, 2010 news release, the panel found that the five individuals had violated the Universal Market Integrity Rules (UMIR) by entering artificial closing bids in 323 instances over a six-month period. Entering orders to create artificial closing prices that would misrepresent the performance and actual demand for securities in the market violates UMIR 2.2(2)(b) and UMIR Policy 2.2. 

After reviewing the five individuals' trading activity in five stocks, the panel found that each had entered artificial closing bids for one or more of the five stocks as follows: 

  • Kenneth Nott, 230 times between May 2, 2005 and October 26, 2005;
  • Aidin Sadeghi, three times between June 1, 2005 and October 27, 2005;
  • Christopher Kaplan, 37 times between May 12, 2005 and October 27, 2005;
  • Robert Nemy, 39 times between May 2, 2005 and October 31, 2005; and
  • Jake Poulstrup, 14 times between May 10, 2005 and August 29, 2005.

Market Regulation Services Inc. (now part of IIROC) began the formal investigation into the individuals' conduct in January 2006. The violations occurred while the five individuals were Registered Representatives at TD Securities, an IIROC-regulated firm. Christopher Kaplan and Jake Poulstrup are currently Registered Representatives with W.D. Latimer Co. Limited, an IIROC-regulated firm. Kenneth Nott, Aidin Sadeghi and Robert Nemy are no longer with an IIROC-regulated firm.

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          
416.943.6996
jkehoe@iiroc.ca
Elsa Renzella
Director, Enforcement Litigation
416.943.5877
erenzella@iiroc.ca


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