A hearing panel of the Investment Dealers Association of Canada (IDA), has imposed penalties on Denes Luciano Fransesco Peroni and Robert Paul Joseph Hétu. The two were approved persons with the Sudbury, Ont. branch of Berkshire Securities Inc.
Following a disciplinary hearing held between April 3 to 6, 2006, the hearing panel found that Peroni and. Hétu had knowingly engaged in conduct unbecoming and contrary to the public interest by failing to advise Berkshire of the true cost of three advertising campaigns carried out in cooperation with three mutual fund companies and by misrepresenting to Berkshire that an advertisement had appeared 12 times in a newspaper when it had only appeared four times.
After an assessment of written submissions on penalty, Peroni and Hétu have each been fined $25,000 and must jointly pay $50,000 in costs.
In addition, both are suspended in all capacities for a period of nine months commencing on Nov.17, 2006.
Peroni and Hétu are also required to re-write the examination based on the Conduct and Practices Handbook before being re-approved as Registered Representatives.
Neither Peroni nor Hétu have been registered with an IDA Member since May 2006.
For a complete summary of facts, please see IDA Bulletin 3588.