IIROC hands down $20,000 in fines

b. A fine in the amount of $10,000 in respect of Count 4 of the Notice of Hearing.

The Hearing Panel’s written decision and reasons can be found here:

In an earlier decision dated November 13, 2012, the panel found that Mr. Deeb committed the following violations:

(a) Count 2: From about November 12, 2008 to December 11,2009 Mr. Deeb failed to keep and maintain at all times a proper set of books and records, contrary to IIROC Dealer Member Rule 17.2, Dealer Member Rule 200 and National Instrument 31-301 which thereby permitted him to engage in the type of conduct described in Count 1.

(b) Count 4: In or about July 2011, Mr. Deeb refused to provide access to certain books and records maintained by Hampton Securities Limited despite a request by IIROC FinOps staff and thereby violated IIROC Dealer Member Rule 19.6.

The Hearing Panel dismissed the following allegations:

(a) Count 1: On or about October 28 and 29, 2009, Mr. Deeb commingled client and pro orders, allocated trades after the close of business when the price of securities was known and, in so doing: (a) profited at the expense of his clients and (b) failed to ensure client priority, thereby engaging in conduct unbecoming, contrary to IIROC Dealer Member Rule 29.1.

(b) Count 3: Between February 1, 2009 and April 30, 2009 and again between December 2009 and May 2010, Mr. Deeb engaged in the business practice commonly known as “free-riding” in that securities were purchased without sufficient cash in the relevant accounts and no attempt was made to properly settle the securities transactions, and thereby engaged in conduct unbecoming, contrary to IIROC Dealer Member Rule 29.1.

IIROC formally initiated the investigation into Mr. Deeb’s conduct in December 2009. The violations occurred when he was registered with Hampton Securities Ltd. (“Hampton”), an IIROC-regulated firm. Mr. Deeb continues to be an IIROC registrant at Hampton.