A hearing panel of the Investment Dealers Association of Canada had fined a Vancouver broker $30,000 for trading in an account without the client’s authorization, and attempting to obstruct the IDA’s investigation.

Stephen Brook Toban was a registered representative at the Vancouver branch office of Global Securities Corp. (Global), at the time of the trading violations.

A disciplinary hearing was held over five days from May 9-12, 2005, and July 18, 2005. The panel released its decision on penalty on August 3.

The panel found that:

  • between Jan. 16, 2001 and Oct. 11, 2001, Toban effected six transactions in the account of a client, without the client’s authorization;

  • Toban failed to inform the appropriate compliance or supervisory personnel of letters of complaint from a client, dated April 21, 2001, and March 25, 2002;
  • between April 25, 2001, and May 9, 2003, Toban attempted to personally settle a complaint from a client by offering to financially compensate the client, and by making two separate cash payments of $1,000 each, without the approval of his employer; and
  • Toban attempted to obstruct the IDA’s investigation by making misrepresentations to IDA staff.

    In addition to the fine, Toban must rewrite the exam based on the Conduct and Practices Handbook Course, and, together with his employer, select a charity approved by the IDA’s Pacific Regional Director, and perform 25 hours of community work for that charity.

    In addition, Toban must pay $5,000 in costs.