The Ontario District Council of the Investment Dealers Association of Canada has fined a former Scotia Capital Inc. rep $40,000 for misdirecting funds, covering trading losses and engaging in unsuitable trading strategies.

On December 4, the District Council accepted a settlement agreement reached with Robert Saltsman, a former registered rep and registered options rep at the North Toronto branch of Scotia Capital.

Saltman admitted he misdirected funds from one client account to another and provided a false explanation and supporting documents as to the origin of the funds.

He also admitted to covering trading losses incurred by a client without the knowledge, consent or authorization of his employer, and engaging in unsuitable trading strategies for three client accounts.

The IDA prohibited Saltsman from acting in any registered capacity with a member firm for 10 years, retroactive to Feb. 7, 2001.

It imposed a $40,000, and ordered him to pay $10,000 in costs.

For a complete summary of facts, please see IDA Bulletin 3228 at www.ida.ca.