The Ontario Securities Commission has denied registration to a former CIBC Investor Services Inc. (CIBC IS) rep saying that his actions in a case that saw the bank lose $1.25 million did not meet the high standards of proficiency and integrity it requires.

Abdullah Yaqeen applied to transfer his Investment Dealers Association of Canada registration to Monarch Delaney Financial Inc. On the recommendation of OSC staff, OSC director David Gilkes denied the application.

Yaqeen was registered with CIBC IS from December 19, 2001 until May 20, 2003. The notice of termination filed by CIBC IS indicated Yaqeen was terminated for cause. After commission staff investigated the circumstances surrounding his termination they recommended the OSC director deny his application based on grounds that he was not suitable for registration. Yaqeen requested the opportunity to be heard by the director.

The circumstances that led to the termination started in April 2003 and had to do with transactions involving Mohamed Dostmohamed and one of his related companies. Dostmohamed was also an employee of CIBC and a client of Yaqeen for eight years.

According to a letter from CIBC, he allowed $1.69 million to be accessed by Dostmohamed or his related companies through transfers, wires or withdrawals in April 2003. Commission staff submitted that CIBC lost approximately $1.25 million as a result of these actions. The OSC says that charges have been laid against Dostmohamed but there have been no charges laid against Yaqeen in relation to this matter.

Counsel for Yaqeen pointed out that he had received a number of performance awards that demonstrated that he had both proficiency and integrity. Counsel argued he had made one mistake in an otherwise unblemished career at CIBC.

However, the OSC director found that these transactions should have raised red flags. “I find it hard to equate the actions of the applicant with high standards of proficiency and of integrity required of a professional in the securities industry,” he ruled

http://www.osc.gov.on.ca/en/Enforcement/Decisions/2004/rad_20040604_yaqeen-ay.htm