A Hearing Panel of the Investment Dealers Association of Canada has permanently banned Robertson Rodger Dow, a former approved person with the Toronto office of Octagon Capital Corp., for accepting trades from a person associated with organized crime.
Following a disciplinary hearing held on June 27, the hearing panel found that Dow engaged in conduct unbecoming in that he:
- accepted orders to trade from an individual he knew or should have known to have had a history of securities violations and/or association with organized crime;
- concealed from Octagon the fact that he was taking trading instructions from persons not authorized in writing and that the true identity of beneficial owners of accounts was different than as identified in account documentation; and
- accepted trading instructions from persons who were not the owners of the accounts and were not authorized to give instructions.
Dow’s trading involved short selling over-the-counter bulletin board stocks through market makers in the United States. He also took instructions from a client with respect to ‘making a market’ in the stock Hi-Energy.
Dow is permanently prohibited from registration approval in any registered capacity with an IDA member firm, fined $300,000 and must disgorge $361,972 in commissions and pay $110,000 in costs.
Dow’s motion for a stay of the proceedings in this matter was dismissed by the hearing panel. He has not been registered with an IDA Member firm since September 2005.
For a complete summary of facts, please see IDA Bulletin 3558 at www.ida.ca or www.accovam.ca.