A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement between IIROC staff and Harry Richard Newman.
Specifically, Mr. Newman admitted that between June 2007 and April 2010 he engaged in excessive trading in an elderly client’s account which was not within the bounds of good business practice and was unsuitable, contrary to IIROC Dealer Member Rules 1300.1(o) and (p) [IDA Regulations 1300.1(o) and (p) prior to June 1, 2008].
Pursuant to the settlement agreement, Mr. Newman agreed to the penalty of a permanent prohibition from approval for registration with IIROC. Mr. Newman also agreed to pay costs in the amount of $5,000.
It is also significant that, separate from IIROC and prior to the settlement hearing, Mr. Newman personally paid $680,000 toward a settlement of the elderly investor’s civil claim.