An appeal panel of the Investment Industry Regulatory Organization of Canada has reduced fines against a Vancouver-based CFO who argued the penalty against him was unreasonably high, IIROC announced on Wednesday.

In March 2008, an IIROC hearing panel found that Mark Lotz, former CFO of Golden Capital Securities Ltd., submitted false information to the IDA and failed to disclose to Golden Capital Securities that he had become the CFO of a publicly traded company.

The hearing panel imposed fines of $25,000 and costs of $10,000 against Lotz, as well as the requirement that within six months he write and pass the examination based on the partners, directors and officers course administered by the Canadian Securities Institute.

In September, Lotz lodged an appeal against the decision, suggesting that the panel had made findings of fact that were contrary to the admissions made. He argued that as a result, his reputation had been unduly damaged and that the penalty was unreasonably high.

The appeal panel, which heard the case in early December, agreed with this submission and reduced the penalty to payment of a $20,000 fine, payment of $5,000 in costs. The panel maintained the requirement that Lotz complete the partners, directors, and officers course.

The investigation involving Lotz was formally launched by the Investment Dealers Association of Canada in November 2006.

IE