A Blackmont Capital Inc. trading officer has been fined $350,000 by the Investment Industry Regulatory Organization of Canada for undisclosed financial dealings in client accounts, the regulator announced on Tuesday.

Following a disciplinary hearing held in Toronto in February, an IIROC hearing panel has imposed a fine of $350,000 against Julius Caesar Phillip Vitug, plus costs of $80,000. Vitug also faces a permanent ban from approval in any category under IIROC’s rules.

The penalty follows a hearing panel decision issued in late March, which found that Vitug, a trading officer, registered representative and associate portfolio manager with Blackmont Capital, had formerly engaged in business conduct unbecoming or detrimental to the public interest.

In particular, the panel found that between April 2003 and August 2005, Vitug had an undisclosed financial interest and undisclosed financial dealings in accounts, including accounts held at another member firm, of two of his clients. During the period, Vitug was a registered rep with TD Waterhouse Canada Inc. and Blackmont Capital.

Vitug later approached the Ontario Securities Commission, filing a request for a hearing and a review of the IIROC decision, arguing that the hearing panel failed to deliver proper reasons for its decision. In late June, the OSC announced that it would hold a hearing to consider reviewing the decision.

The OSC hearing is set to take place on July 20.

Vitug is still within the industry in a registered capacity with Blackmont Capital Inc.

IE