The Ontario District Council of the Investment Dealers Association of Canada has fined former broker David Cathcart $120,000 for conduct unbecoming.

At the time of the transgressions, Cathcart was a registered representative with Northern Securities Inc. and with Rampart Securities Inc.

In a settlement agreement reached March 4, Cathcart admitted that he:

  • conducted unauthorized trades in three client accounts;
  • traded in the shares of MYO Diagnostics Ltd. and Charrington Business Consultants Inc. in various client accounts, without any benefit to those accounts and for the purpose of avoiding margin requirements or payment for the shares, a practice known as “debit kiting”;
  • accepted compensation from a client without disclosing such compensation to his employer;
  • failed to disclose to the IDA that he had become a director of Charrington Business Consultants Inc.

The IDA also found that Cathcart violated regulation by failing to learn the essential facts relative to four clients and the transactions in their accounts.

Besides the fine, the IDA permanently banned Cathcart from registration in any capacity with the association, and ordered him to pay $50,000 in costs.

Cathcart has not been registered with the IDA since September 2001.

For a complete summary of facts, please see IDA Bulletin 3264.