TORONTO, Feb. 22 /CNW/ - On February 22, 2010, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC Staff and David Francis Shep (the "Respondent"). Pursuant to the Settlement Agreement, the Respondent admitted that:
1. Between, on or about November 4, 2002, and May 4, 2005, the
Respondent violated Investment Dealers Association of Canada By-law
29.1 and engaged in conduct unbecoming or detrimental to the public
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. Facilitating trading creating a misleading appearance of
increased price and volume constituting manipulative and
deceptive trading in SSVT/Dermisonics;
c. 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
d. 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 Investment
Dealers Association of Canada 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
Pursuant to the Settlement Agreement, the Hearing Panel imposed the
following penalty against the Respondent:
a. a permanent ban from receiving registration approval in any
capacity with any Dealer Member of IIROC
b. a global fine in the sum of $80,000
and required the Respondent to pay costs in the amount of $20,000.
The Investment Dealers Association of Canada formally initiated the investigation into the Respondent's conduct on August 12, 2004. 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 Panel will issue its Reasons and Decision at a later date. The approved Settlement Agreement is available at www.iiroc.ca.
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
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