A hearing panel of the Investment Dealers Association of Canada has fined an options representative with CIBC World Markets Inc. $295,000 for depositing company funds in a client’s account and manipulating trading tickets.

Jules Mangin was a egistered representative options, trading officer and alternate designated person with the Toronto office of CIBC World Markets.

After a disciplinary hearing on February 3 and 4, the panel found that, between February 2001 and August 2003, Mangin:

  • deposited a cheque in the amount of US$167,343.35, which was payable to CIBC World Markets into the account of his client, without the knowledge or consent of the firm;
  • agreed with the client to share in any profits obtained while trading in the client’s account;
  • traded in the client’s account without sufficient cash to cover the trades;
  • allocated various losing trades in the client’s account to an inventory account controlled by Mangin; and
  • manipulated certain trade tickets in order to avoid detection by the firm.

    In addition, from June 2001 to August 2003, Mangin effected discretionary trades in the client’s account without the account having been designated and approved as a discretionary account.

    The panel permanently prohibited Mangin from approval to act in any registered capacity with any member of the IDA, fined him $295,000 and ordered him to disgorge $207,137.59 of the funds misappropriated.

    He must also pay $10,000 in costs.

    The IDA says Mangin has not been registered in the industry since Sept. 9, 2003.