A former broker in the Ottawa offices of HSBC Securities (Canada) and BMO Nesbitt Burns faces a three-year ban and a $35,000 fine for improper trading in clients’ accounts.

The Investment Dealers Association of Canada announced the settlement with Maurice Guy Brazeau today, acting on the recommendations of a panel of the IDA’s Ontario District Council. Brazeau admitted that between December 2000 and July 2001, he

  • traded contrary to the best interests of two clients by arranging for the purchase and sale of an illiquid stock in their joint account to generate capital losses for the benefit of one of Brazeau’s other clients;
  • processed five unauthorized purchases in the joint account to make up for losses; and
  • improperly told his clients there would be no loss to their joint account as a result of the trades.

Brazeau was fined $35,000 and must disgorge $1,568.28 in commissions. He is also prohibited from seeking registration approval with any member firm in the securities industry for three years and must pay $20,000 in IDA costs.