IN THE MATTER OF David Francis Shep - Settlement
The subject matter of the proposed Settlement Agreement concerns allegations that:
1. (a) 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: (b) 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); (c) Facilitating trading creating a misleading appearance of increased price and volume constituting manipulative and deceptive trading in SSVT/Dermisonics; (d) Providing account information to a person who was not authorized in writing 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 Caledonia'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.
The IDA formally initiated the investigation into the Respondent's conduct on
The hearing is not open to the public unless and until the Settlement Agreement has been accepted by the Hearing Panel. If the Hearing Panel accepts the Settlement Agreement, the Hearing Panel's decision and reasons will be made available to the public.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in
For further information: Alex Popovic, Vice President, Enforcement, (416) 943-6904, [email protected]; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, [email protected]
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