An Investment Dealers Association of Canada hearing panel has imposed discipline penalties on Michael William Balanko, at all material times an approved person at the Vancouver office of First Associates (now Blackmont Capital Inc.), an IDA member firm.

Following a hearing held in November and December 2006, a hearing panel determined that during the period between January and November 2004, Balanko made unsuitable investment recommendations for the accounts of two clients.

In addition, in February 2004, Balanko effected 15 transactions in the accounts of one of his clients without prior written authorization from the client and without the account being specifically approved and accepted as discretionary by the firm; and between September and November 2004, Balanko effected 10 unauthorized transactions in the account of another client.

For his misconduct, Balanko is fined $60,000, must pay $25,000 in costs and $2,500 in disgorgement, and is prohibited from re-approval with an IDA member firm for a period of two years. As a condition of re-approval, Balanko must successfully complete the Canadian Securities Course, the Conduct and Practices Handbook Course, and will be subject to 12 months of strict supervision.

Balanko is not registered with an IDA member firm.