Enforcement Roundup – December 2018
In this edition of the Enforcement Roundup, we cover two alleged breaches of British Columbia Securities Commission (BCSC) orders. We also cover an Investment Industry Regulatory Organization of Canada (IIROC) decision and two settlement agreements.
White Rock man, Gozdek, was charged with violating the B.C. Securities Act for allegedly breaching a BCSC order.
The charges – failing to comply with a BCSC order by trading in securities, by acting in a consultative capacity in the securities market, and by engaging in investor relations activities – arise from a BCSC Criminal Investigation.
Cho was arrested and charged with additional offences under the B.C. Securities Act. He is being held in custody in Vancouver pending a bail hearing. He faces new charges of breaching a BCSC order, trading in securities without registration, failing to file a prospectus, and making misrepresentations.
Cho had been awaiting trial earlier this year on 13 offences resulting from an investigation by the BCSC’s Criminal Investigations Branch.
An IIROC panel found Tassone liable of failing to disclose and obtain the approval of his firm for his involvement in outside business activities.
The panel found that Tassone, a former registered representative with a Delta, B.C. branch of Raymond James Ltd., carried out an unapproved and undisclosed business activity, contrary to dealer member rules.
IIROC will hold a separate hearing on penalties.
IIROC Settlement Agreements
In the settlement agreement, Barkwell admitted to borrowing approximately $49,500 from three clients without the knowledge of his employers. The violations occurred while he was a registered representative with the Abbotsford branches of Raymond James Ltd., and Edward Jones.
Barkwell is suspended from registration in any capacity with IIROC for 12 months and must pay a $10,000 fine. He must also re-write and pass the conduct and practices handbook course prior to re-registration.
In the settlement agreement, Raymond James Ltd. admitted that it failed to have a system of internal controls reasonably designed to achieve compliance – contrary to two IIROC dealer member rules. As a result of its failure, some clients in fee-based accounts were charged higher fees than they should have been.
Raymond James agreed to pay a fine of $125,000 and costs in the amount of $5,000.
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 BCSC’s online complaint form.