On March 29, 2016, an IIROC hearing panel accepted a settlement agreement, with sanctions, between IIROC staff and Allen Samuel Mendelman.

IIROC says Mendelman admitted he borrowed funds from a client and engaged in outside business activities by facilitating off-book investments by his clients, without his firm’s knowledge. IIROC adds Mendelman also shared non-public, material information concerning a publicly-traded company with 11 of his clients.

Specifically, Mendelman admitted to the following violations:

  • Between 2002 and September 2013, Mendelman engaged in personal financial dealings with a client, without the knowledge or consent of his firm, contrary to IIROC Dealer Member Rule 29.1 (Investment Dealer Association by-law 29.1 prior to June 1, 2008);
  • Between February and April 2013, Mendelman engaged in outside business activities by facilitating off-book investments by his clients, without the knowledge of his firm, contrary to IIROC Dealer Member Rule 29.1; and
  • On or about November 2013, Mendelman shared non-public, material information concerning a publicly traded company with 11 of his clients, contrary to IIROC Dealer Member Rule 29.1.

Pursuant to the Settlement Agreement, Mendelman agreed to the following penalties:

a) A fine in the sum of $100,000;

b) A suspension for a period of 18 months;

c) Successfully rewrite the Conduct and Practices Handbook examination before a return to the industry after the suspension; and

d) A six-month period of close supervision upon a return to the industry.

Mendelman also agreed to pay costs in the amount of $5,000.

Read the settlement agreement.

IIROC formally initiated the investigation into Mendelman’s conduct in November 2013. The conduct occurred while he was a Registered Representative with the Calgary branch of Canaccord Genuity Corp., an IIROC-regulated firm. Mendelman is currently a registered representative with the Calgary branch of Integral Wealth Securities Limited, an IIROC-regulated firm.