TORONTO, April 18, 2012 /CNW/ - On April 18, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between the IIROC staff, Mark Steven Rotstein and Jessica Elisabeth Zackheim.
Mr. Rotstein and Ms. Zackheim admitted for more than a decade, until March 2011, they signed client names on account- and investment-related documents and passed those signatures off as the clients' own, contrary to IDA By-law 29.1 and IIROC Dealer Member Rule 29.1.
Pursuant to the Settlement Agreement, Mr. Rotstein and Ms. Zackheim agreed to the following penalty:
a. Mr. Rotstein shall pay IIROC a fine in the amount of $250,000;
b. Ms. Zackheim shall pay IIROC a fine in the amount of $50,000;
c. Mr. Rotstein is prohibited from registration with IIROC for a period of 12 months, to be served in two intervals of six consecutive months without interruption, which intervals shall be completed by no later than October 15, 2014;
d. Ms. Zackheim is prohibited from registration with IIROC for a period of 12 months, to be served in two intervals of six consecutive months without interruption, which intervals shall be completed by no later than October 15, 2014; and
e. Mr. Rotstein's and Ms. Zackheim's registration terms and conditions imposed pursuant to the Ontario District Council Registration Subcommittee Decision dated July 21, 2011, modified as necessary and set out in the Appendix to the Settlement Agreement, shall remain in place until April 30, 2015.
Mr. Rotstein and Ms. Zackheim also agreed to pay costs in the amount of $10,000.
The Settlement Agreement is available at
The Hearing Panel's decision will be made available at www.iiroc.ca. 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. Rotstein's and Ms. Zackheim's conduct in May 2011. The conduct at issue occurred when Mr. Rotstein was a Registered Representative and Ms. Zackheim was an Investment Representative at the North York Branch of RBC Dominion Securities Inc., an IIROC-regulated firm. Mr. Rotstein and Ms. Zackheim are now registered in those capacities at the Head Office Branch of Scotia Capital Inc., an IIROC-regulated firm.
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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