Briefly: “MFDA sets hearing for Mary Lambros” and more news

The MFDA today announced that it has issued a Notice of Settlement Hearing regarding the presentation, review and consideration of a proposed settlement agreement by a Hearing Panel of the MFDA’s Central Regional Council.

The settlement agreement will be between Staff of the MFDA and Mary Lorelei Lambros (the “Respondent”) and involves matters for which the Respondent may be disciplined by a Hearing Panel pursuant to MFDA By-laws. The subject matter of the proposed settlement agreement concerns allegations that:

(a) from June 28, 2005 to December 20, 2007, while she was a joint owner with right of survivorship over a client’s account:

i. the Respondent engaged in conduct that gave rise to an actual or potential conflict of interest between the Respondent and the client which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1; and ii. the Respondent carried out trades in the client’s account on at least four occasions in respect of which she alone authorized the trades and determined the securities traded, contrary to MFDA Rule 2.3.1(a) and 2.1.1.

(b) between February 2006 and December 2007, the Respondent engaged in personal financial dealings with clients and engaged in securities related business that was not carried out for the account and through the facilities of the Member by participating in the development of a Bahamian Property, contrary to the Member’s policies and procedures and MFDA Rules 1.1.1(a), 1.1.2, 1.1.5, 1.2.1(d), 2.1.4, 2.5.1 and 2.1.1.

A first appearance teleconference will take place on December 13, 2010, commencing at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, in the hearing room located at the MFDA offices, 121 King Street West, Suite 1000, Toronto, Ontario to set a date for a hearing. The hearing will be open to the public, except as may be required for the protection of confidential matters.

Click here to read a copy of the Notice of Settlement Hearing.

IIROC sets disciplinary hearing for David Bruce Connacher

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to set a date for a disciplinary hearing in the matter of David Bruce Connacher.

The hearing concerns allegations that Mr. Connacher violated IIROC rules by engaging in misleading and deceptive trading activity, and also engaging in personal financial dealings with clients without the knowledge of his employer.

The set date hearing is open to the public, unless the panel orders otherwise. The date for the discipline hearing will be published when it becomes available.

Set Date Hearing: 10:00 a.m. December 7, 2010 Location: IIROC Boardroom 1 121 King Street West, Suite 1600 Toronto, Ontario

Specifically, the allegations are that from March to October 2008, Mr. Connacher engaged in conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1, by:

(a) Conducting trades in his firm’s average price client inventory account (API) in a manner that was misleading and deceptive; and (b) Entering into several loan arrangements with two of his clients without the knowledge or consent of his employer.

The alleged violations occurred between March 2008 and October 2008 when Mr. Connacher was the Head Trader and a Registered Representative with Evergreen Capital Partners Inc. Evergreen Capital ceased operations on October 29, 2008, and IIROC began its formal investigation into Mr. Connacher’s conduct on November 3, 2008. Evergreen filed an Assignment in Bankruptcy on or about December 2, 2008. Mr. Connacher has not been registered with IIROC since Evergreen ceased its operations.

IIROC sets disciplinary hearing for Marcel Anil Rada

A hearing has been scheduled before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) to hear evidence and submissions in the matter of Marcel Anil Rada.

The hearing concerns allegations that Mr. Rada participated in off-book transactions without the knowledge or consent of his firm, issued a personal cheque from a closed account, and failed to cooperate with IIROC’s investigation into these matters.

The hearing is open to the public, unless the Hearing Panel orders otherwise. The panel’s decision and reasons will be made available at www.iiroc.ca:

Hearing Date: 10:00 am, January 11, 12, and 13, 2011

Location: Reportex Agencies Ltd. 925 West Georgia Street, Suite 1010, Vancouver, B.C.

Specifically, the allegations are that Mr. Rada engaged in conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1, by:

a)Soliciting and obtaining funds for Ialta Industries Ltd. for the stated purpose of helping the firm to regain its stock listing after a cease trade order. It is alleged that Mr. Rada made these off-book transactions without the knowledge or consent of his employer, and that he was the primary beneficiary of these investment funds as a significant portion of the money raised was disbursed from Ialta’s account to Mr. Rada’s account immediately after receipt. b) Soliciting and obtaining funds for the stated purpose of investing in Montrose Explorations Ltd. These off-book transactions were made without the knowledge or consent of his employer. It is alleged that Mr. Rada was the primary beneficiary of these investments as a significant portion of the funds raised were immediately disbursed from Montrose’s account to Mr. Rada’s account. Moreover, it is alleged that when he became president of Montrose in November 2007, Mr. Rada failed to cause the company to issue the shares owed to an investor pursuant to the investment. c) Facilitating an off-book transaction on behalf of Montrose without the knowledge or consent of his employer. d) Issuing a personal cheque for $30,000 to re-pay a loan to Montrose on a bank account that he knew or ought to have known had been closed two months earlier.

It is also alleged that Mr. Rada violated IIROC Rule 19.5 by failing to co-operate with IIROC’s investigation when he refused to produce banking records when asked by staff, and failed to attend a scheduled interview with staff.

The alleged Rule 29.1 violations occurred in 2007 when Mr. Rada was a Registered Representative with the Vancouver branches of Wolverton Securities Ltd., and subsequently, Global Securities Corporation, both IIROC-regulated firms. IIROC formally began the investigation into Mr. Rada’s conduct on May 16, 2008. The alleged violation of Rule 19.5 then occurred from November 2008 to January 2009. Mr. Rada is no longer a registrant with an IIROC-regulated firm.

Frances elected new International Chairman of YPO

Robert Frances, president and CEO of PEAK Financial Group, has been elected international chairman of Young Presidents’ Organization (YPO). He will chair this global network of young leaders during the fiscal year 2011-2012.

Frances, a 10-year YPO member, has demonstrated his strong involvement and interest by occupying several key positions within the organization. He served as chair of the International Education Committee and as chair of the YPO Quebec Chapter.

“Robert is one of YPO’s most passionate and effective champions. He has also been a strong advocate for the organization, positioning YPO for the next generation of young business leaders,” said 2010-2011 International Chairman Jill Belconis.

“I am honored to have been chosen to chair this organization. This is an incredible opportunity on both a professional and personal level,” said Mr. Frances. “YPO has made a tremendous impact on my life by helping me develop the qualities needed to lead the PEAK Financial Group with much energy, inspiration and confidence and and I look forward to executing this mandate with the same level of passion and involvement.”

(11/19/10)