A hearing panel of the Investment Dealers Association of Canada permanently banned a former broker with BMO Nesbitt Burns Ltd., and fined him $125,000 for unauthorized trading.
In a decision rendered on May 11, following a disciplinary hearing held on February 7 and April 27, the uearing panel found Philip Deans guilty of having engaged in business conduct unbecoming and detrimental to the public interest,
Among the panels findings:
- Between May 28, 1998 and Nov. 30, 2001, Deans effected approximately 157 trades in the account of a client, without the client’s knowledge or consent.
- Between May 28, 1998 and Nov. 30, 2001, Mr. Deans falsely declared as “unsolicited” 134 unauthorized trades effected by him in a client’s account, without the client’s knowledge and consent, suggesting falsely that these trades had been initiated by the client himself.
- Between May 28, 1998 and May 28, 2002, Deans misled a client by providing him with false portfolio statements, showing the assets in his account to be higher than they actually were, even after all of the investments had been liquidated and the account showed a debit.
For his misconduct, Deans was assessed a lifetime ban on approval in any capacity with a IDA member, a $125,000 fine and a $41,789.37 disgorgement of commissions. In addition, Deans was ordered to pay an additional $15,000 in the association’s costs.
Deans has not been registered with a member of the IDA since his termination by BMO Nesbitt on July 31, 2002.