A hearing panel of the Investment Dealers Association of Canada has dismissed a charge of failure to cooperate against Tumer Salih Bahcheli, at all material times an approved person with the Calgary branch of Jennings Capital Inc.
In November 2004, IDA staff was advised by Bahcheli’s former employer, Yorkton Securities Inc. (now Orion Securities Inc.) that Bahcheli had been dismissed with cause. Orion had found e-mails and draft agreements relating to a private placement in InBusiness Solutions Inc. that involved some of Orion’s clients and Bahcheli. Orion was not aware of these agreements or the private placement.
In September 2005, Bahcheli attended an interview and provided the IDA with relevant information. Between March 2005 and August 2006, Bahcheli was asked to provide additional information, including documents evidencing a loan. Bahcheli did not provide the requested documents and cited solicitor-client privilege and privacy issues. As a result, the IDA commenced a disciplinary proceeding against Bahcheli for failure to cooperate in an investigation.
Although the panel understood the IDA’s rationale for commencing the proceeding against Mr. Bahcheli, it dismissed the allegation for some of the following reasons:
- Bahcheli reasonably relied on legal advice regarding the privilege/privacy issue;
- Bahcheli made efforts to respond to the requests; and
- the loan documents (which were eventually produced after the notice of hearing was issued) did not materially enhance the information that the IDA had previously received and were not of material importance to the investigation.
Bahcheli is currently employed with Jennings Capital Inc.