A hearing panel of the Investment Dealers Association of Canada has imposed discipline penalties on Donald Moffat Little, at all material times a registered representative with the London, Ont. branch of TD Waterhouse Canada Inc.

Following a discipline hearing held May 15, 16 and 17, 2007, in Toronto, the panel found Little guilty of engaging in business conduct or practice unbecoming or detrimental to the public interest.

In or about March 2006, Little accepted a cheque from an elderly client in the sum of $500,000, liquidated securities in the client’s account in order to cover the cheque, and then deposited the cheque into his personal bank account without the knowledge or consent and contrary to the internal policies of TD Waterhouse.

The panel found that there was no evidence of any victimization of the client as the evidence indicated the client had full command of her mental facilities at the time the gift was given. The client signed a statutory declaration stating that she intended to make a substantial gift to Little and that she was not under duress or unduly influenced at the time she made the gift.

A second allegation that Little became the attorney, pursuant to a power of attorney for property, and the executor of the will of a client without the knowledge or consent and contrary to the internal policies of TD Waterhouse, was dismissed as the pane was left in a state of doubt on this charge and ruled that the benefit of that doubt must be given to Little.

When assessing the penalty, the panel noted that it was necessary to take a serious view of the contravention of which Little was convicted.

The circumstances surrounding his acceptance of the gift could have a detrimental effect upon the investment industry’s reputation for financial probity.

The panel took into account that Little was terminated as a result of his conduct and that he has in effect been under suspension for over 14 months; the panel did not therefore impose any additional suspension of approval.

The panel determined that the contravention called for the imposition of a fine. It took into account that Little has no previous disciplinary record in the investment industry and that his inability to work in the investment industry for 14 months has caused him serious financial loss. Moreover, TD Waterhouse had also required Little to reimburse the firm for the $45,000 in DSC fees, which had been charged to the client’s account resulting from his liquidation of her securities and for which TD Waterhouse had repaid the client.

For his misconduct, Little is fined $15,000 and must pay costs in the amount to be fixed by the panel at a future date. He must also successfully complete the Conduct and Practices Handbook exam prior to any subsequent registration with an IDA member firm.

Little is no longer employed with an IDA Member firm.