IDA imposes sanctions against three registrants

The IDA has slapped a $10,000 fine against CIBC World Markets rep Randal Jerome Hazen, who admitted to soliciting and trading investments illegal in Ontario, one of three advisors sanctioned Monday by the brokerage industry association.

The off-book private placement transactions, made during February, March and August, 2000, took place without the knowledge or approval of CIBC World Markets.

Hazen must also pay $5,000 in costs and has agreed to reimburse affected clients through monthly payments. If he fails to make a payment, he will be immediately suspended. Hazen is currently employed with CIBC as a trading officer first vice-president, registered representative and registered representative options.

In an unrelated case, the IDA announced it was levying a fine of $30,000 on Roger Racine, at all material times manager of the Laval branch of Scotia Capital, for failure to supervise.

At a settlement hearing, Racine admitted that between April 2002 and December 2003 he failed to fulfill his supervisory role, specifically in regards to KYC requirements when accepting new clients. Racine also admitted that he failed exercise adequate supervision of transactions, allowing inappropriate trades for eight clients.

On top of the fine, Racine must pay the IDA $5,000 in costs and successfully re-write and pass the Branch Managers Course and Options Supervisors Course.

In addition, the IDA today announced a permanent ban and a $35,000 fine against Christian Guilbault, who was a Registered Representative Options at the Laval branch of Scotia Capital. Guilbault has admitted to numerous inappropriate transactions between April 2002 and January 2004, generally ignoring investor risk profiles.

In addition to the fine, Guilbault must pay $5,000 in costs.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com