IDA Hearing Panel finds Jeffrey Bradford Kasman and Clinton Anderson guilty of facilitating manipulative and/or deceptive trading

    TORONTO, Dec. 11 /CNW/ - A Hearing Panel of the Investment Dealers
Association of Canada (IDA), appointed pursuant to By-law 20, has found
Jeffrey Bradford Kasman and Clinton Anderson, at all times Approved Persons at
the Toronto branch office of Desjardins Securities Inc., guilty of violating
By-law 29.1.
    The Hearing Panel found that between January 30, 2003 and April 30, 2003,
Mr. Kasman and Mr. Anderson facilitated manipulative and/or deceptive trading
in the shares of American Motorcycle Corporation (AMCY), a Pink Sheets issuer,
which is conduct unbecoming or detrimental to the public interest, contrary to
By-law 29.1.

    Specifically, the Hearing Panel found that:
    1. Shares of AMCY were manipulated by three clients of Mr. Kasman and
       Mr. Anderson. Mr. Kasman and Mr. Anderson were joint registered
       representatives for three offshore accounts that were controlled by
       these clients and were used to carry out manipulative and deceptive
       trading in AMCY shares. The price of AMCY fluctuated upward from
       US $1 on January 30, 2003, to a high of US $2.50 in the middle of
       April 2003 before decreasing to US $1.30 by the end of April 2003. The
       volume of trading during this time period went from little volume on
       January 30th, to more than 150,000 shares towards the end of April
       when the volume then rapidly decreased;

    2. During this time period, Mr. Kasman and Mr. Anderson's three clients
       accounted for 76% of the total reported trading volume of shares of
       AMCY on the Pink Sheets;

    3. These accounts were responsible for the high trade of the day 57% of
       the time, including high trading on the buy side during the last hour
       of trading on at least eight occasions;

    4. The three accounts upticked the price of AMCY 41 times and matched
       trades took place between the three accounts 16 times, within minutes
       or even seconds of each other;

    5. Mr. Kasman and Mr. Anderson facilitated this manipulative and
       deceptive trading because they put the orders into the market for the
       three accounts;

    6. Although Mr. Kasman and Mr. Anderson were unthinking and unaware of
       the significance of the trading in question, their failure to make
       appropriate inquiries in the circumstances was "conduct falling far
       below that required and expected of a registered representative"; and

    7. Mr. Kasman and Mr. Anderson failed to know their clients and properly
       monitor and assess their trading and understand its purpose and

    The penalties to be imposed upon Mr. Kasman and Mr. Anderson will be
assessed at a penalty hearing on February 6, 2008.
    Mr. Kasman and Mr. Anderson are currently registered representatives at
the Toronto office of Research Capital Corporation, an IDA Member firm.
    The IDA would like to thank the Ontario Securities Commission, the
Securities and Exchange Commission and the National Association of Securities
Dealers (now the Financial Industry Regulatory Authority) for their assistance
in this case.

    The Investment Dealers Association of Canada (IDA) is the national
self-regulatory organization of the securities industry. The IDA's mission is
to protect investors, foster market integrity and enhance the efficiency and
competitiveness of the Canadian capital markets. The IDA enforces rules and
regulations regarding the sales, business and financial practices of its
Member firms and their approved persons. Investigating complaints and
disciplining Members and approved persons is part of the IDA's regulatory
role. It is IDA policy to ensure that where relevant, referrals to the
appropriate policing authority are made.

For further information:

For further information: Alex Popovic, Vice-President, Enforcement,
(416) 943-6904 or; Jeffrey Kehoe, Director, Enforcement
Litigation, (416) 943-6996 or

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