A panel of the Alberta Securities Commission has found that a former securities broker in the Calgary office of Wolverton Securities Ltd. conducted discretionary trading in the trading accounts of two of his clients, which was not permitted by the terms of his registration.

The panel said Christopher Stewart conducted discretionary trading in the trading accounts of two of his clients, Cathy Lynn Botting and Duane Steve Wolanuk.

At hearing held January 17, the panel held that, “Stewart, in short, failed as a gatekeeper. His prohibited discretionary trading activity in the Wolverton Accounts exposed the capital market as a whole, to harm. We are in no doubt that Stewart’s misconduct was contrary to the public interest.”

The ASC panel will now consider what sanctions are appropriate in this case.

Earlier this year, ASC staff concluded settlements with three other individuals involved in the same trading activity, Douglas Wenzel, Cathy Botting and Duane Wolanuk for breaches of the Securities Act.

Wenzel agreed to cease trading, a loss of use of exemptions and a director and officer ban, with some exceptions, for five years and to pay $35,000 for his failure to comply with insider and control person requirements of the Securities Act.

Botting and Wolanuk agreed to cease trading and a loss of use of exemptions, with some exceptions, for one year and to pay $7,500 each for failure to make insider filings required under the Securities Act.