The Investment Dealers Association of Canada announced today that a hearing will be held in respect of discipline penalties which may be imposed upon Jean-Louis Trudeau, a former broker at the Montreal branch office of MacDougall, MacDougall & MacTier Inc. (3macs)

In its decision dated Dec. 12, 2006, an IDA hearing panel ruled that, during the period between February 2003 and May 2004, Trudeau failed to use due diligence to ensure that the acceptance of orders for the accounts of four clients were within the bounds of good business practice.

Specifically, Trudeau failed in his role to protect the public interest by executing trades that were indicative of unlawful or suspicious behaviour without making any prior effort to determine whether insider trading or the use of privileged information was involved.

The panel also found Trudeau guilty of failing to use due diligence to ensure that he learned the essential facts relative to four clients and to every order or account accepted. During the period between June 2001 and May 2004, while an approved person at Thomson, Kernaghan & Co. Ltd. and 3macs, Trudeau neglected to identify the clients in accordance with IDA guidelines relative to the proceeds of crime (money laundering) legislation and failed to communicate with his clients to obtain the necessary information regarding their identity, their assets and the ties that connected them.

The panel found Trudeau not guilty of violating Regulation 1300.1 (a) and 1300.1 (b). The IDA had alleged that, during the period between November 2002 and May 2004, he had failed to question his client or verify his status as an insider.

At the request of the IDA, the panel accepted the withdrawal of the charge that Trudeau had neglected to report in writing to the IDA within the prescribed 10 day period and, on multiple occasions, had failed to report on various forms that he had been charged by the Montreal Exchange.

Trudeau is currently employed with an IDA member firm.

The hearing is scheduled to commence on May 1 at the Barreau du Québec, in Montreal.