The Ontario Securities Commission (OSC) has suspended the registration of a scholarship plan dealer rep for 18 months, after he admitted to introducing clients to another type of investment, beyond his registration.
The OSC released a decision approving a settlement agreement between staff of the commission and Arkady Burdo, a dealing rep sponsored by scholarship plan dealer, Global RESP Corp. According to the decision, in Dec. 2013, OSC staff recommended that his registration be suspended. Burdo requested the opportunity to be heard (OTBH) to review that recommendation.
Now, Burdo and OSC staff have agreed to a settlement in which he admits that he acted in furtherance of trades in securities beyond what’s permitted by his category of registration; and, in doing so, “failed to properly discharge all of his obligations as a registered dealing representative.”
Specifically, the deal indicates that Burdo introduced several of his scholarship plan clients to an investment program operated by “Solutions 21 Financial,” that involved investors lending money to a company called Xeris Capital Initiative Ltd., which was involved in a real estate development in the Caribbean. Some of those clients suffered total, or partial, losses of the principal of their investments.
“Burdo admits to acting in furtherance of other trades in securities by, for example, responding to investors’ questions about the investment vehicles rather than
merely referring them to the relevant issuer or promoter,” the settlement says.
It also notes that Burdo also lost his principal by participating in the investment program, and that he received no compensation for referring others to participate.
As part of the settlement, they agreed that Burdo’s registration be suspended, but that he may apply for a reactivation of registration after 18 months. He is also to successfully complete the Conduct and Practices Handbook Course before re-applying.