The Investment Industry Regulatory Organization of Canada has suspended Toronto-based commodities dealer Barret Capital Management Inc. and imposed fines totaling $225,000 on the company and two of its registered reps for trading violations, misleading clients and poor compliance supervision.
An IIROC hearing panel has accepted a settlement agreement with Barret, Jamie Cohen and Idan Cohen, IIROC said Monday.
In the settlement, Barret and the Cohens admitted that, between 2009 and 2011, they improperly used a trade allocation account to allocate trades to certain clients to the detriment of other clients, misled numerous clients and failed to have adequate compliance supervision.
Specifically, Barret and the two reps admitted to: improperly using an allocation account and other accounts to allocate trades to certain clients, to the detriment of other clients; misleading numerous clients as to the positions in their accounts and the value of their accounts; and failing to have adequate compliance supervision, internal controls and books and records.
As part of the settlement, Barret’s membership is immediately suspended and the firm will immediately cease dealing with the public.
IIROC staff may undertake any action with Barret’s carrying broker, Laurentian Bank Securities Inc., to facilitate the orderly transfer of client accounts from Barret.
In addition, Barret’s membership rights and privileges are terminated and the firm is expelled from IIROC as of 30 days from the date of acceptance of settlement agreement.
Jamie and Idan Cohen are each prohibited from approval for registration with IIROC for 20 years, and will each pay IIROC a $50,000 fine.
Barret, Jamie Cohen and Idan Cohen also agreed to pay $125,000 in costs.
IIROC formally initiated an investigation into the conduct of Barret, Jamie Cohen and Idan Cohen in March 2011.
The firm had been operating under tight restrictions since an IIROC panel adjourned its hearing in January.