MONTREAL, Feb. 13, 2012 /CNW/ - On January 25th, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between IIROC staff and Mr. Konstantine Dariotis and Mr. Alfonso Fiumidinisi.
Mr. Dariotis and Mr. Fiumidinisi admitted that they engaged in outside business activities without proper disclosure and authorization from their employer.
Specifically, Mr. Dariotis and Mr. Fiumidinisi admitted to the following violation:
|(a) During the approximate period between 1991 and 2005, Mr. Dariotis and Mr. Fiumidinisi engaged in outside business activities without proper disclosure and authorization from their Dealer Member employer by:|
|a)||referring individuals including clients of its Dealer Member employer to offshore banks;|
|b)||obtaining and acting upon trading authority over most of these offshore accounts; and|
|c)||facilitating these individuals to invest in offshore funds for which Mr. Dariotis and Mr. Fiumidinisi had an interest to earn fees and commissions.|
|all of which is business conduct that is unbecoming or detrimental to the public interest, contrary to IDA By-law 29.1 (now Dealer Member Rule 29.1).|
Pursuant to the Settlement Agreement, Mr. Dariotis and Mr. Fiumidinisi agreed to the following penalties:
|(a) To pay to IIROC a total fine in the amount of $350,000; and|
|(b) To each be suspended from any registered capacity with IIROC for a period of 2 months, to be served consecutively;|
Mr. Dariotis and Mr. Fiumidinisi also agreed to pay costs to IIROC in the amount of $50,000.
The Settlement Agreement and the panel's decision dated January 25th, 2012, are available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=78CE4D35727747B3B0C16F751D50F13A&Language=en. 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 the investigation into Mr. Dariotis and Mr. Fiumidinisi's conduct in November 2006. The conduct occurred when Mr. Dariotis and Mr. Fiumidinisi were Registered Representative with the Montréal branch of RBC Dominion Securities Inc., an IIROC-regulated firm. Mr. Dariotis and Mr. Fiumidinisi are now employed with CIBC World Markets Inc. an IIROC-regulated firm.
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:
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