A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) accepted a settlement agreement, with sanctions that include a permanent ban on registration, between IIROC staff and Marcel Anil Rada.
In the agreement, Rada admitted he violated IIROC rules through his participation in various off-book transactions without the knowledge or consent of his firm, issued a personal cheque from a closed account and failed to cooperate with IIROC’s investigation. The panel’s decision and reasons will be made available at www.iiroc.ca.
Rada agreed to the following sanctions:
- a permanent prohibition from registration in any capacity with an IIROC-regulated firm;
- a fine in the amount of $75,000; and
- costs in the amount of $10,000.
Specifically, Rada admitted that he contravened IIROC Rule 29.1 by:
- soliciting monies for off-book investments in Ialta Industries Ltd. when in fact he was the primary beneficiary of those monies;
- soliciting monies from an investor for an off-book transaction in Montrose Explorations Ltd. when in fact he was the primary beneficiary of that money and he failed to cause Montrose to issue shares to that investor as part of that investment;
- soliciting monies for an off-book investment; and
- issuing a personal cheque for $30,000 to an investor in re-payment of a short-term loan to Montrose on a personal bank account he knew or ought to have known had been closed two months earlier.
Rada also admitted that from November 14, 2008 to August 25, 2010, he failed to co-operate with IIROC’s investigation, contrary to IIROC Rule 19.5 by failing to produce banking records and by failing to attend a scheduled interview.
The Rule 29.1 violations occurred in 2007 when Rada was a registered representative with the Vancouver branches of Wolverton Securities Ltd., and subsequently, Global Securities Corporation, both IIROC-regulated firms. IIROC began the investigation into Rada’s conduct on May 16, 2008. Rada is no longer a registrant with an IIROC-regulated firm.