SROs hand down fines, ban

The self regulatory organizations have released reasons for decisions in four cases, involving allegations “excessive trading or switching” and outright forgery of credentials.

Below are some cautionary tales of things you should avoid doing.

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MFDA Hearing Panel issues Reasons for Decision in the Matter of Worldsource Financial Management Inc.

A Hearing Panel of the MFDA’s Central Regional Council has issued its Reasons for Decision in connection the Settlement Hearing held in Toronto, Ontario on July 14, 2010 in the Matter of Worldsource Financial Management Inc.

To read a copy of the Reasons for Decision, click here.

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IIROC announces discipline against Dirk Christian Lohrisch

A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has imposed a permanent ban from registration on Dirk Christian Lohrisch for a series of violations which include misrepresenting his credentials, forgery and attempting to obstruct an IIROC investigation.

The penalty imposed by the Panel at its May 27, 2010 hearing also includes an order for Mr. Lohrisch to pay a fine of $40,000 and costs of $27,000. The permanent ban prohibits Mr. Lohrisch “from approval in all capacities.”

Following a disciplinary hearing on April 20, 2010 in Vancouver, the panel found Mr. Lohrisch engaged in conduct unbecoming or detrimental to the public interest, a breach of IIROC Rule 29.1, when he:

(a) Submitted to the Investment Dealers Association of Canada (now IIROC) a Change of Registration Information Form which was misleading about his credentials; (b) Submitted or caused to be submitted to IIROC a document that he forged or caused to be forged with the intent that IIROC act upon that document as if it were the original; and (c) Attempted to frustrate and/or obstruct IIROC’s investigation into his conduct by not responding truthfully or completely with respect to the counts above contrary to IIROC Rule 19.6.

“The forgery perpetrated by the respondent in this case is egregious and again indicates the complete failure of the respondent to understand or practice the principles required of a professional in the securities industry,” said the panel in its decision. “There are no short cuts to registration.” The panel’s full Reasons for Decision are available by clicking here.

IIROC began the investigation into Mr. Lohrisch’s conduct on July 6, 2009. The violations occurred in 2003 and 2009, while he was employed at the Vancouver head office of Canaccord Financial Ltd., an IIROC-regulated firm. Mr. Lohrisch is no longer employed with an IIROC-regulated firm.

(08/19/10)