A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement, with sanctions, between IIROC staff and Todd William Stefiuk.

In the agreement, Mr. Stefiuk admits his failure to disclose certain outside business activities to his firm and his involvement with clients in what is called an off-book investment violated IIROC rules.

Mr. Stefiuk agrees to a $35,000 fine and to pay $5,000 in costs. Furthermore, as a condition of re-approval in any category, Mr. Stefiuk must successfully complete the Conduct and Practices Handbook examination, and be subject to strict supervision for one year.

Specifically, Mr. Stefiuk admits to conduct unbecoming or detrimental to the public interest, contrary to IIROC Rule 29.1, by:

  • Failing to disclose to his firm his outside business activities in approximately eight corporations; and
  • Facilitating and participating in the purchase and sale of securities on behalf of 42 investors, 37 of whom were his clients, in a private placement that was not done through his firm.

The violations occurred approximately between March 2006 and October 2008, when he was a registered representative with the Calgary branch of MGI Securities Inc., an IIROC-regulated firm. IIROC began its formal investigation into Mr. Stefiuk’s conduct on February 19, 2009. He is no longer registered with an IIROC-regulated firm.