The Ontario Securities has upheld the decision by Investment Industry Regulatory Organization of Canada to fine a trading officer $350,000 for undisclosed financial dealings in client accounts.

In July 2009, an IIROC hearing panel imposed a fine of $350,000 against Julius Caesar Phillip Vitug, plus costs of $80,000. It also permanently banned him from approval in any category under IIROC’s rules.

The penalty followed a hearing panel decision issued in March 2009, which found that Vitug, a trading officer, registered representative and associate portfolio manager with Blackmont Capital Inc., had formerly engaged in business conduct unbecoming or detrimental to the public interest.

In particular, the panel found that between April 2003 and August 2005, Vitug had an undisclosed financial interest and undisclosed financial dealings in accounts, including accounts held at another member firm, of two of his clients. During the period, Vitug was a registered rep with TD Waterhouse Canada Inc. and Blackmont Capital.

Vitug later approached the Ontario Securities Commission, filing a request for a hearing and a review of the IIROC decision, arguing that the hearing panel failed to deliver proper reasons for its decision.

In its decision released Friday, following a hearing in late July 2009, the OSC said it saw no reason to interfere in the “reasonable decision” of the IIROC hearing panel.

It added that Vitug “did not meet the burden of demonstrating that the commission has grounds to intervene in the decision.”

“We find that the [IIROC] District Council’s decision is reasonable and does not require intervention by the commission,” the OSC concluded.

The OSC dismissed Vitug’s application.

IE