The Alberta District Council of the Investment Dealers Association of Canada has expelled Roche Securities Ltd. for failing to file monthly financial reports and not paying its membership dues on time.

The IDA also fined Douglas Roche, president, CEO and acting CFO of Roche Securities, $20,000 for his role in the botched wind down of the firm. It also prohibited him from holding the position of CFO or being responsible for financial compliance matters with any member firm for a period of five years.

Roche Securities and Douglas Roche must also pay $7,500 in costs.

Roche Securities began winding down its operations in October 2002, and by March 2003, all client accounts had been moved to other Members. In November 2002, Roche Securities requested permission to resign its membership and commenced the resignation process. The process was never completed.

In a settlement reached with the IDA, Roche Securities admitted that it failed to file Monthly Financial Reports for the months of March 2003 to September 2003; failed to file its February 2003 Monthly Financial Report within 10 business days of month end; and failed to pay its membership fees on time.

Douglas Roche admitted that he failed to maintain proper financial books and records. He also removed all of the assets and capital from Roche Securities prior to its completion of the IDA’s resignation process, undermining the safeguards provided by that process. However, the IDA says no client accounts incurred any losses or were put at risk as a result of his conduct.

The District Council accepted the settlement agreement on the condition that Douglas Roche also accept a suspension from being a Partner, Director or Officer of any Member for a period of two years.

For a complete summary of facts, please see IDA Bulletin 3216 at www.ida.ca.