TORONTO, Feb. 13, 2012 /CNW/ - A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a Settlement Agreement, with sanctions, between IIROC staff and Barret Capital Management Inc. (Barret), Jamie Cohen and Idan Cohen.
Barret, Jamie Cohen and Idan Cohen admitted that, between 2009 and 2011, they improperly used a trade allocation account to allocate trades to certain clients to the detriment of other clients, misled numerous clients and failed to have adequate compliance supervision.
Specifically, Barret, Jamie Cohen and Idan Cohen admitted to the following violations:
Between September 2009 and December 2011, while Barret was a Dealer Member and Jamie Cohen and Idan Cohen were Registered Representatives, they failed to observe high standards of ethics and conduct in the transaction of their business, and engaged in business conduct or practices which are unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1, in that they:
|(a)||improperly used an allocation account and other accounts to allocate trades to certain clients, to the detriment of other clients;|
|(b)||misled numerous clients as to the positions in their accounts and the value of their accounts; and|
|(c)||failed to have adequate compliance supervision, internal controls and books and records.|
Pursuant to the Settlement Agreement, Barret, Jamie Cohen and Idan Cohen agreed to the following penalties:
|(a)||Barret's Membership is immediately suspended;|
|(b)||Barret will immediately cease dealing with the public;|
|(c)||IIROC staff may undertake any action with Barret's carrying broker, Laurentian Bank Securities Inc., to facilitate the orderly transfer of client accounts from Barret in a manner consistent with applicable law;|
|(d)||Barret's rights and privileges of Membership are terminated as of 30 days from the date of acceptance of this Settlement Agreement;|
|(e)||Barret is expelled from the Corporation as of 30 days from the date of acceptance of this Settlement Agreement;|
|(f)||Jamie Cohen is prohibited from approval for registration with IIROC at any time within 20 years of the date of acceptance of this Settlement Agreement;|
|(g)||Jamie Cohen will pay IIROC a fine in the amount of $50,000;|
|(h)||Idan Cohen is prohibited from approval for registration with IIROC at any time within 20 years of the date of acceptance of this Settlement Agreement; and|
|(i)||Idan Cohen will pay IIROC a fine in the amount of $50,000.|
Barret, Jamie Cohen and Idan Cohen also agreed to pay costs in the amount of $125,000.
The Settlement Agreement is available at
Documents related to ongoing IIROC enforcement proceedings - including Reasons and Decisions of Hearing Panels - are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.
IIROC formally initiated an investigation into the conduct of Barret, Jamie Cohen and Idan Cohen in March 2011. The violations occurred while Barret was an IIROC- regulated firm and the Cohens were Registered Representatives with Barret.
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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.
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, permanent bars, expulsion from membership, or termination of rights and privileges 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.
For further information:
Vice President, Enforcement
Director, Public Affairs