A hearing panel of the Investment Dealers Association of Canada has fined a former broker with RBC Dominion Securities Inc. $20,000 for his role in manipulating the shares of shares of Pender International Inc.

On January 16, the hearing panel considered, reviewed and accepted a Settlement Agreement negotiated between IDA staff and Robert Faiello, an approved person at the Richmond Hill, Ont. office of RBC DS.

Faiello admitted that between May and November 2004, he
unknowingly facilitated a manipulation by accepting trade orders from one of his clients for shares of Pender International Inc. In addition, Faiello also admitted that he failed to exercise due diligence to learn and remain informed of the essential facts to a client and their respective trade orders in Pender.

The panel noted that although Faiello had no knowledge of the manipulation, he should have recognized that his client was using his own account to further the manipulation.

For his misconduct, the panel fined Faiello $20,000, and ordered him to pay $5,000 in costs. The panel also prohibited him from re-approval by the IDA in any capacity for a period of two years, effective Nov. 15, 2006.

In addition, Faiello must successfully complete the Conduct and Practices Handbook exam within six months from any subsequent registration with an IDA firm.

Faiello is not employed in a registered capacity at any IDA firm.

For a complete summary of facts, please see IDA Bulletin 3605.