On February 6, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a settlement agreement between IIROC staff and Gabriel Ka Leung Lee.
Lee admitted that without his firm’s knowledge he engaged in outside business activities by facilitating off-book investments and loans by eight clients in two separate companies. He also admitted to borrowing funds from a client.
Specifically, Lee admitted to the following violations:
a) Between June 2008 and September 2011, Lee engaged in outside business activities by facilitating off-book investments and/or loans between eight clients and Asia Active Resources, without the knowledge of his firm and without proper exemptions under the Securities Act (Alberta), contrary to Dealer Member Rule 29.1;
b) In 2009, Lee engaged in outside business activities by facilitating off-book investments by three clients in Castle Rock Research Corporation, without the knowledge of his firm, contrary to Dealer Member Rule 29.1; and
c) In or about February 2011, Lee engaged in personal financial dealings with a client without the knowledge or consent of his firm when he borrowed $100,000 from a client, contrary to Dealer Member Rule 29.1.
Pursuant to the settlement agreement, Lee agreed to the following penalties:
a) Lee agrees to pay a fine to IIROC in the amount of $75,000.00; and
b) Lee shall be prohibited from registration in any capacity for a period of six months.
Lee also agreed to pay costs in the amount of $5,000.00.
Read the settlement agreement.
IIROC formally initiated the investigation into Lee’s conduct in September 2011. The conduct occurred when he was a registered representative with the Edmonton branch of Richardson GMP Limited, an IIROC-regulated firm. Lee is no longer a registrant with an IIROC-regulated firm.