A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement, with sanctions, between IIROC staff and Gary John Williamson.
In this agreement, Mr. Williamson entered orders to purchase securities with the intention of establishing an artificial bid price, thereby improving the performance of an inventory account for which he was responsible.
Mr. Williamson agrees to a $40,000 fine and to pay $5,000 in costs. The penalty also includes a six-month suspension from access to an IIROC-regulated marketplace.
Specifically, Mr. Williamson admits he entered numerous late bid orders on the TSX Venture Exchange. The closing bid orders improved the daily profit and loss position of his inventory account, which factored into the calculation of his monthly compensation. Mr. Williamson knew or ought reasonably to have known that his late-day orders would create an artificial bid price, contrary to UMIR 2.2(2)(b) and UMIR Policy 2.2, for which he is liable under UMIR 10.4(1).
IIROC began its formal investigation into Mr. Williamson’s conduct in November 2008. The violations occurred between January 1, 2008 and February 29, 2008 while he was a Trader with Global Maxfin Capital Inc., an IIROC-regulated firm. Mr. Williamson is no longer registered with an IIROC-regulated firm.