TORONTO, March 23, 2012 /CNW/ - On March 9, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a Settlement Agreement between the IIROC staff and Paul James Vorstadt.
Mr. Vorstadt admitted he forged a letter which misrepresented the features of an investment product he had recommended to a client.
Specifically, Mr. Vorstadt admitted to the following violation:
In or around March 2009, Mr. Vorstadt fabricated a letter purportedly from Manulife Financial Corp. ("Manulife") in which he misrepresented the guarantee features of an investment product he had recommended to a client. Mr. Vorstadt printed the letter on Manulife letterhead and then forged the signature of a Manulife employee, contrary to Dealer Member Rule 29.1.
Pursuant to the Settlement Agreement, Mr. Vorstadt agreed to the following penalty:
a) A fine in the amount of $40,000; and
b) A prohibition from seeking approval in any capacity until October 5, 2012.
Mr. Vorstadt also agreed to pay costs in the amount of $5,000.
The Settlement Agreement and the 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. Vorstadt's conduct in October 2011. The conduct occurred when he was a registered representative with the Markham, Ontario branch of TD Waterhouse Canada Inc., an IIROC-regulated firm. Mr. Vorstadt is no longer a registrant with 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