IN THE MATTER OF Michael Scott Leigh - Penalty
(a) In or about August of 2005, the Respondent, at all material times a Registered Representative ("RR"), engaged in conduct unbecoming or detrimental to the public interest in that he sought and accepted a personal loan from his clients WH and SH without the knowledge, consent or authorization of his employer, a Member firm, contrary to Association By-Law 29.1; and (b) During the period from August of 2005 until December 2005, the Respondent, at all material times a Registered Representative, engaged in conduct unbecoming or detrimental to the public interest in that he paid back a personal loan to the Hs in part by gains/profits made in the H's account that they were nevertheless entitled to and by discounting his commissions, contrary to By-Law 29.1; and (c) During the period from September 2004 to September 2006, the Respondent, at all material times a Registered Representative, engaged in conduct unbecoming or detrimental to the public interest in that he carried out unauthorized trading in the accounts of his clients, the Rs and Cs, without their prior knowledge or consent, contrary to Association By-law 29.1; and (d) During the period from August, 2004 until September, 2006, the Respondent, at all material times a Registered Representative, failed to know his clients and engaged in unsuitable trading in that he failed to use due diligence to ensure that the recommendations he made to the Rs were suitable based on their actual financial situation, limited investment knowledge and experience, actual investment objectives and/or risk tolerance when trading in their joint margin account, contrary to Association Regulation 1300.1 (a) and (q). At the conclusion of the penalty hearing, the Hearing Panel imposed the following penalty against the Respondent: (a) The Respondent be suspended from approval with IIROC for a period of 10 years, effective immediately; (b) The Respondent pay a fine to IIROC in the amount of $70,000; (c) The Respondent pay investigation and prosecution costs to IIROC in the amount of $36,000; (d) The Respondent be required to re-write the CPH examination prior to applying for re-approval following the completion of the suspension; and (e) In the event that the Respondent is again registered as an approved person, it will be a condition of such registration that he be subject to a period of strict supervision for the first 12 months of his employment as an approved person.
IDA formally initiated the investigation into the Respondent's conduct on
The Hearing Panel's written Decision and Reasons will follow.
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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