Ex-rep sanctioned for off-book dealings

In a settlement with the Investment Industry Regulatory Organization of Canada (IIROC), a former rep agreed to a three-year ban and a fine after admitting that he accepted an undisclosed payment from a junior energy company back in 2017.

A hearing panel of the self-regulatory organization accepted a settlement between IIROC staff and Jeffrey Brian Ber, a former rep with TD Waterhouse Canada Inc. in Calgary, which saw Ber admit that he received an off book payment from an issuer without the approval of his dealer.

Specifically, Ber admitted to accepting a payment of over $100,000 from an unnamed junior oil and gas issuer that traded on the TSX Venture Exchange.

At around the same time, the company was involved in a financing, which TD Securities Inc. helped underwrite. As part of that deal, Ber purchased $6.75 million worth of shares in the offering for 55 client accounts.

After TD discovered the payment, it subsequently unwound over half of the share purchases for clients, “resulting in no losses or fees charged to these clients,” the settlement said.

According to the agreement, Ber explained that the payment in 2017 was for unrelated consulting work that he did for the company three years earlier (in 2014).

However, he didn’t seek approval for the payment, and didn’t disclose it to his firm — and, as a result, violated IIROC rules.

Under the terms of the settlement, he agreed to a $70,000 fine, a three year suspension and to pay $5,000 in costs.

“If it were not for financial evidence of the respondent’s inability to pay provided to staff, the amount of the fine agreed to in this settlement agreement would have been greater,” the settlement noted.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.