An IIROC hearing panel accepted a Settlement Agreement between IIROC staff and RBC Dominion Securities Inc., Jean-Pierre Ménard and Serge Leclaire in the matter of Earl Jones.

RBC Dominion Securities Inc., Ménard and Leclaire have admitted they failed in their gatekeeper duty when they allowed Jones to have numerous trading authorizations for unrelated clients, and didn’t question certain withdrawals from accounts that he had trading authorization.

Read: RBC offers $17 million to Earl Jones victims

RBC Dominion Securities Inc., Ménard and Leclaire admitted to the following violations:

Between August 2003 and December 31, 2008, they failed in their gatekeeper duty by:

  • Permitting Jones to have numerous authorizations to trade on behalf of numerous unrelated clients;
  • Not questioning withdrawals from certain accounts for which Jones had trading authorization; contrary to Dealer Member Rule 29.1 [IDA By-law 29.1 prior to June 1, 2008].

Read: Judge allows Earl Jones’s victims to sue RBC

As a result, RBC Dominion Securities Inc., Ménard and Leclaire have agreed to the following penalties:

  • Leclaire shall pay IIROC a fine of $100,000;
  • Ménard shall pay IIROC a fine of $100,000;
  • Leclaire and Ménard’s approved registration status is suspended for six months, with the suspensions to run consecutively;
  • RBC Dominion Securities Inc. shall pay IIROC a fine of $500,000;
  • RBC Dominion Securities Inc., Ménard and Leclaire have also agreed to pay costs in the amount of $20,000.