A hearing panel of the Investment Dealers Association of Canada (IDA) has fined a former executive with Rampart Securities Inc. $35,000 and suspended him for three years for his role in improperly distributing shares to offshore accounts.

Lawrence Freedman was a registered representative – options and director, trading officer (executive vice president) and branch manager with the Toronto office of Rampart, a former member of the IDA.

A disciplinary hearing was held on June 13 and June 15, 2005. The hearing panel found that between January 1999 and February 2002, Freedman should have made further enquiries and taken steps to personally ensure that transactions involved in the issuance of shares of an Ontario issuer to offshore accounts, and their subsequent disposition, complied with the Securities Act, as well as the Interpretation Note to Policy 1.5 of the Ontario Securities Commission relating to the distribution of securities outside of Ontario.

In addition, the panel found that Freedman failed to perform adequate and due diligence to learn the essential facts relative to seven corporate clients and one individual client, and failing to ensure the acceptance of every order for their accounts was within the bounds of good business practice.

In addition to the fine and suspension, Feedman successfully rewrite the Conduct and Practices Handbook examination as a condition of re-approval to the industry, and pay $15,000 in IDA costs.

Mr. Freedman has not worked in the industry in a registered capacity since September 30, 2002.

For a complete summary of facts, please see IDA Bulletin 3457.