A hearing panel of the Investment Dealers Association of Canada has fined a British Columbia man $60,000.

David Wayne Gradidge was an approved person with the White Rock branch office of Scotia Capital Inc. (formerly ScotiaMcLeod Inc.).

On October 10, the panel considered, reviewed and accepted a Settlement Agreement negotiated between IDA staff and Gradidge.

Gradidge admitted that:

  • in June 2000, he purchased real estate with a client without the knowledge, consent or authorization of his firm;
  • between August 2001 and March 2002, he loaned funds to a client without the knowledge, consent or authorization of his firm;
  • between July 2002 and August 2003, he commingled his personal funds with those of a client and together purchased not pro-eligible securities in his client’s investment account;
  • between March 2002 and June 2002, loaned funds to a client without the knowledge, consent or authorization of his firm; and
  • in March 2003, he sold real estate to a client without the knowledge, consent or authorization of his firm.

    Gradidge is fined $60,000 and must disgorge $5,250 in commissions and profits. He is also prohibited from personally purchasing any new issue securities of any publicly traded corporation or income trust for a period of 24 months and is subject to close supervision for a period of 12 months.

    In addition, he must rewrite and pass the Conduct and Practices Handbook exam within six months of the Settlement Agreement and pay $5,000 in costs.

    Gradidge is currently an approved person with Berkshire Securities Inc.

    For a complete summary of facts, please see IDA Bulletin 3579.