TORONTO, Nov. 12, 2012 /CNW/ - Following a disciplinary hearing held from May 7 to June 1, 2012 and a penalty hearing held October 11 and 12, 2012, a Hearing Panel of the Investment Industry Regulatory Organization of Canada ("IIROC") has found that Northern Securities Inc. ("NSI"), Victor Alboini, Fred Vance and Douglas Chornoboy contravened several IIROC Dealer Member Rules, and has imposed the penalties set out below.
The Hearing Panel's decision dated November 10, 2012 is available at http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=99ECB28C7AB0475B952C1DCCEB222D9C&Language=en.
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Specifically, the Hearing Panel found that the Respondents committed the following violations:Count 1: Between August and November 2008, Mr. Alboini, as Ultimate Designated Person and a Registered Representative at NSI, engaged in a trading practice which improperly obtained access to credit for his client, Jaguar Financial Corporation, and in doing so risked the capital of both NSI and its carrying broker, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1; Count 2: Between August and November 2008, Mr. Vance, as Chief Compliance Officer, failed to adequately supervise Mr. Alboini's trading activity involving Jaguar Financial Corporation and other NSI clients, contrary to IIROC Dealer Member Rules 1300.1, 1300.2 and 2500; Count 3: From 2006 to 2010, NSI, Mr. Alboini, as Ultimate Designated Person, and Mr. Vance, as Chief Compliance Officer, repeatedly failed to ensure that NSI corrected deficiencies found in three business conduct compliance reviews and one trading conduct review, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IDA By law 29.1 and IIROC Dealer Member Rule 29.1; and,