IN THE MATTER OF Robert Mortimer Phillips - Discipline
MONTRÉAL,
The hearing concerns matters for which the Respondent may be disciplined as a Regulated Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.
The hearing concerns allegations that:
(a) In January and February 2001, the Respondent, while a Registered Representative of a Member of the Association, made four (4) unauthorized transactions in the account of client A, which resulted in a gross loss of $39,000, contrary to By-law 29.1 of the Association; (b) Between January 2000 and December 2006, the Respondent, while a Registered Representative of a Member of the Association, admitted that he personally covered losses caused by discretionary trades which he effected in the account of client B, contrary to By-law 29.1; (c) Between January and December 2006, the Respondent, while a Registered Representative of a Member of the Association, effected fifty (50) discretionary trades in the account of client B, without such client account having been approved and accepted as a discretionary account and without the prior written authorization of the client, contrary to Regulation 1300.4 and to By-Law 29.1 of the Association; (d) Between January 2001 and April 2006, the Respondent, while a Registered Representative of a Member of the Association, effected discretionary trades in the accounts of client C, without the necessary registration or without the prior written authorization of the client, and without the client accounts having been approved and accepted in writing as discretionary accounts, contrary to Regulation 1300.4 and to By-Law 29.1 of the Association; (e) Between January 2001 and April 2006, the Respondent, while a Registered Representative of a Member of the Association, failed to observe high standards of ethics and conduct and engaged in conduct unbecoming and detrimental to the public interest, contrary to By-law 29.1, by : - leading client C to believe that she was still receiving income from a $100,000 bond, when he knew that the bond had been sold; - using the $100,000 bond to cover certain discretionary trades effected in the client's account, without her knowledge or consent; - injecting personal funds into the client account to cover the losses caused by his discretionary trading; (f) On or around November 19, 2000, the Respondent, while a Registered Representative of a Member of the Association, falsified the signature of client D, as was admitted during the investigation, on an account guarantee agreement in favour of the account of C, contrary to By-Law 29.1; (g) Over the course of 2004, the Respondent, while a Registered Representative of a Member of the Association, failed to observe high standards of ethics and conduct and engaged in conduct unbecoming and detrimental to the public interest, contrary to By-law 29.1, by giving client E his personal guarantee concerning the results of trades in a position, and by reimbursing the client with personal cheques to cover the losses that resulted from the trades.
IIROC formally initiated the investigation into the Respondent's conduct on
The Notice of Hearing is available at: www.iiroc.ca.
The hearing is open to the public, unless the Hearing Panel orders otherwise. The Hearing Panel's decision and reasons will be made available to the public.
IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in
For further information: For further information: Carmen Crépin, Vice President, Québec, (514) 878-2854, [email protected]; Jeff Kehoe, Director, Enforcement Litigation, (416) 943-6996, [email protected]
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