A hearing panel of the Investment Dealers Association of Canada has permanently banned George Pappas, a registered rep with the Vancouver office of Yorkton Securities Inc.

On September 24, the panel accepted a settlement agreement negotiated between Pappas and IDA staff. Pappas admitted that he:

  • failed to learn the essential facts (personal and financial circumstances) of three clients and inaccurately completed the New Client Application Form for their accounts;
  • recommended securities and engaged in an aggressive short-term trading strategy for two client accounts, which was unsuitable given the clients’ investment objectives and risk factors;
  • exercised discretion with respect to trades in two client accounts without prior written authorization of the client and approval of the Member firm;
  • endorsed his signature as witness to the signatures of two clients on account opening documentation when, in fact, he was not actually in the presence of the clients at the time they signed the documentation; and
  • entered into an agreement to compensate a family group of clients.

In a release, the IDA said there was evidence before the panel that Pappas has a debilitating medical condition, which was a significant factor in the panel’s decision to accept the settlement agreement.