The Investment Dealers Association of Canada has permanently banned a broker for engaging in personal financial dealings with his clients without the knowledge of his employers.

Michael Druhan was a registered representative at the Toronto offices of Yorkton Securities Inc. and Sprott Securities Inc.

At a disciplinary hearing held on March 14, the IDA hearing panel found that:

  • between November 1996 and April 2000, Druhan maintained an account at an outside firm in the name of his spouse, without the knowledge or consent of his employers; and
  • between November 1996 and November 1999,. Druhan engaged in personal financial dealings with three of his clients, receiving from them financial compensation in the form of securities valued at approximately $373,500, without the knowledge or consent of his employers.

Druhan is permanently banned from acting in any registered capacity with any IDA member firm; is required to disgorge commissions in the amount of $403,366.52; and fined $150,000.

In addition, he must pay to pay $20,000 in IDA costs.

Druhan is not currently registered in any capacity with the IDA.