TORONTO, Sept. 16 /CNW/ - Notice is hereby given that an appearance will be held before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC), on Monday, September 28, 2009 at IIROC (Boardroom No. 2) located at 121 King St. West, Suite 1600, Toronto, Ontario, at 11:00am or as soon thereafter as the appearance can be held, to speak to the matter of a disciplinary hearing in the matter of David Francis Shep (the "Respondent").
The proposed hearing concerns matters for which the Respondent may be disciplined as a Regulated Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.
The hearing concerns allegations that the Respondent:
1. Between on or about November 4, 2002, and May 4, 2005, the Respondent
violated Association By-law 29.1 and engaged in conduct unbecoming or
detrimental to the public by:
(a) Failing to disclose that he was actively and closely involved in
the affairs of Second Stage Ventures Inc. (SSVT), subsequently
called Dermisonics Inc. (Dermisonics), a Nevada company whose
shares were traded on the National Association of Securities
Dealers' Over-the-Counter Bulletin Board (OTC BB);
(b) Failing to disclose that he had a beneficial interest in accounts
in the name of Trygve Cinch Holdings (Trygve) which held and
traded a large quantity of SSVT/Dermisonics shares during the
(c) Engaging in manipulative and deceptive trading methods in regards
to trading in SSVT/Dermisonics shares;
(d) Providing account information to a person who was not authorized
to receive such information for an account in the name of
Caledonia Corporate Management Group Ltd. (Caledonia); and
(e) Failing to carry out his duties as gatekeeper and facilitating
questionable activities in Cadedonia's account.
2. On or about April 20, 2006, the Respondent violated Association By-
law 19.5 by answering questions untruthfully or incompletely that
were asked by Association Staff investigators with respect to the
extent of his involvement in SSVT/Dermisonics and his beneficial
interest in the Trygve accounts.
The IDA formally initiated the investigation into the Respondent's conduct on August 12, 2004. It is alleged that the violations occurred when the Respondent was a Registered Representative with the Toronto Branch of Desjardins Securities Inc. The Respondent is no longer a registrant with an IIROC-regulated firm.
The hearing is open to the public, unless the Hearing Panel orders otherwise.
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: For further information: Alex Popovic, Vice President, Enforcement, (416) 943-6904, firstname.lastname@example.org; Jeff Kehoe, Director, Enforcement, (416) 943-6996, email@example.com