In this edition of the Enforcement Roundup, we summarize one enforcement decision, one settlement agreement, and highlight one notice of hearing, all from the BC Securities Commission (BCSC). We also feature two Investment Industry Regulatory Organization of Canada (IIROC) settlement agreements and one disciplinary decision. Also included in this Roundup are two Mutual Fund Dealers Association of Canada (MFDA) sanctions decisions and one settlement agreement.
For details about a case, click on the name of the person that appears above the summary.
BCSC Panel Decision
A BCSC panel sanctioned Malone, a Richmond, BC resident, for breaching an order prohibiting him from acting as a director or officer of any issuer and engaging in investor relations activities.
For his misconduct, the panel ordered Malone to pay $60,000, issued various market bans against him, and ordered him to complete a course concerning the duties and responsibilities of directors and officers. His bans are to remain in effect until the later of the date that he pays his administrative penalty, the date he successfully completes the course, and October 3, 2023.
The panel issued its findings decision against Malone in August 2016.
BCSC Settlement Agreement
In a settlement agreement, Nawata admitted he breached a BCSC cease trade order issued by the BCSC’s Executive Director on December 11, 2012.
For his misconduct, Nawata paid $6,000 to the BCSC and is subject to various market bans, and must complete a course concerning the duties and responsibilities of directors and officers. Nawata’s bans are to remain in effect until the later of the date that he successfully completes the directors and officers course and October 13, 2017.
BCSC Notice of Hearing
The BCSC’s Executive Director issued a notice of hearing alleging that Deyrmenjian, Khorchidian, Ratsaphong, and EuroHelvetia Trust Co. S.A. orchestrated a pump and dump scheme relating to Kunekt Corporation.
IIROC Settlement Agreement
In the settlement agreement, Englesby and Nishimura admitted to the entry of orders that could reasonably be expected to create an artificial price for securities, an action of which they ought to have reasonably known.
As part of the agreement, Englesby agreed to a two-month suspension from access to an IIROC-regulated marketplace and a $45,000 fine. Nishimura agreed to a one-month suspension from access to an IIROC-regulated marketplace and a $15,000 fine. Englesby and Nishimura also agreed to pay costs of $5,000 each.
In the settlement agreement, Robinson admitted that he opened and maintained two brokerage accounts outside of his firm without his firm’ s knowledge or approval, and that he misled IIROC staff in the course of the investigation.
As part of the agreement, Robinson agreed to a $50,000 fine and suspension from registration in any capacity with IIROC for 12 months. Robinson also agreed to pay costs of $5,000.
IIROC Discipline Decision
Following a disciplinary hearing, an IIROC panel found Sojka liable of failing to ensure that the orders he placed for the account of a client were suitable for her. The IIROC panel also found that he engaged in discretionary trading, and that he failed to attend an IIROC investigatory interview.
The panel imposed fines of $50,000 for unsuitable and unauthorized discretionary trading and a fine of $50,000 for failure to cooperate. Sojka is permanently barred from approval with IIROC in any category and is required to pay costs of $20,000.
MFDA Sanctions Decision
An MFDA hearing panel imposed sanctions on Bhathal after finding that she contravened various MFDA rules and bylaws when she processed unauthorized redemptions and made unauthorized withdrawals from client accounts, falsified client signatures, and failed to cooperate with the MFDA’s investigation and her firm’s investigation into her conduct.
The sanctions include a fine of $155,000, costs of $10,000, and a permanent prohibition on the authority of Bhathal to conduct securities-related business while employed or associated with any MFDA member.
An MFDA hearing panel imposed sanctions on Bansal after he admitted to obtaining and maintaining pre-signed account forms for clients.
The hearing imposed sanctions of a $12,500 fine and costs of $2,500.
MFDA Settlement Agreement
In the settlement agreement, Nokony admitted to processing trades with pre-signed account forms, falsifying account forms and using those documents to process trades, and indicating that she did not control or possess any pre-signed account forms in an annual registration questionnaire.
As a consequence, Nokony paid a fine of $11,500, costs in the amount of $2,500, and agreed to comply with all applicable securities legislation and regulations, including MFDA Rule 2.1.1.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact BCSC Inquiries at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected]. You can also file a complaint or submit a tip anonymously using the BCSC’s online complaint form.
InvestRight.org is the British Columbia Securities Commission’s investor education website.