Enforcement Notice Decision - IN THE MATTER OF Northern Securities Inc., Victor Philip Alboini, Douglas Michael Chornoboy and Frederick Earl Vance - Review Decision

TORONTO, Sept. 26, 2014 /CNW/ - The Ontario Securities Commission (the "OSC") has released its Reasons and Decision on Sanctions and Costs in the matter of Northern Securities ("NSI"), Victor Alboini, Douglas Chornoboy and Frederick Vance.

The OSC ordered the imposition of the following sanctions and costs on the respondents:

Victor Philip Alboini

(a)     A fine of $250,000;

(b)     $244,985 in disgorgement of commissions;

(c)     Suspension of one year from approval by, or registration with, IIROC in all categories;

(d)     Suspension of two years from approval by, or registration with, IIROC as an Ultimate Designated Person;

(e)     A reprimand; and

(f)     $62,500 in costs.

Northern Securities Inc.

(a)     A fine of $50,000;

(b)     A reprimand; and

(c)     $10,000 in costs.

Frederick Earl Vance

(a)     Suspension for three months from approval by, or registration with, IIROC in any supervisory capacity, including acting as Chief Compliance Officer.

Douglas Michael Chornoboy

(a)     A reprimand.

In its earlier decision dated December 19, 2013, the Ontario Securities Commission (the "OSC") upheld a decision of a Panel of the Investment Industry Regulatory Organization of Canada (the "IIROC Hearing Panel") that the Respondents committed the following contraventions:

Count 1: Between August and November 2008, Mr. Alboini, as Ultimate Designated Person and a Registered Representative at NSI, engaged in a trading practice which improperly obtained access to credit for his client, Jaguar Financial Corporation, and in doing so risked the capital of both NSI and its carrying broker, thereby engaging in conduct unbecoming or detrimental to the public interest, contrary to IIROC Dealer Member Rule 29.1;

Count 2: Between August and November 2008, Mr. Vance, as Chief Compliance Officer, failed to adequately supervise Mr. Alboini's trading activity involving Jaguar Financial Corporation and other NSI clients, contrary to IIROC Dealer Member Rules 1300.1, 1300.2 and 2500; and

Count 5(a): NSI, Mr. Alboini, as Ultimate Designated Person, and Mr. Chornoboy, as Chief Financial Officer from February 2008 to February 2009, filed or permitted to be filed inaccurate monthly financial reports which failed to account for leasehold improvement costs, thereby misstating NSI's risk adjusted capital, contrary to IDA By law 17.2 and IIROC Dealer Member Rule 17.2.

The OSC set aside the sanctions and costs imposed on the respondents by the IIROC Hearing Panel. A hearing de novo on sanctions and costs was held before the OSC on June 9, 10 and 11, 2014.

The OSC decision dated September 11, 2014, is available at:

http://www.osc.gov.on.ca/en/Proceedings_rad_20140911_northern-securities2.htm

The OSC decision dated December 19, 2013, is available at:

http://www.osc.gov.on.ca/documents/en/Proceedings-RAD/rad_20131219_northern-securities.pdf

The IIROC Hearing Panel's decision dated November 10, 2012, is available at:

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=99ECB28C7AB0475B952C1DCCEB222D9C&Language=en

Documents related to ongoing IIROC enforcement proceedings - including Reasons and Decisions of Hearing Panels - are posted on the IIROC website as they become available. Click here to search and access all IIROC enforcement documents.

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IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Created in 2008 through the consolidation of the Investment Dealers Association of Canada and Market Regulation Services Inc., IIROC sets high quality regulatory and investment industry standards, protects investors and strengthens market integrity while maintaining efficient and competitive capital markets.

IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding the proficiency, business and financial conduct of dealer firms and their registered employees and through setting and enforcing market integrity rules regarding trading activity on Canadian equity marketplaces.

IIROC investigates possible misconduct by its member firms and/or individual registrants. It can bring disciplinary proceedings which may result in penalties including fines, suspensions, permanent bars, expulsion from membership, or termination of rights and privileges for individuals and firms.

All information about disciplinary proceedings relating to current and former member firms is available in the Enforcement section of the IIROC website. Background information regarding the qualifications and disciplinary history, if any, of advisors currently employed by IIROC-regulated firms is available free of charge through the IIROC AdvisorReport service. Information on how to make investment dealer, advisor or marketplace-related complaints is available by calling 1 877 442-4322.

 

SOURCE: Investment Industry Regulatory Organization of Canada (IIROC) - General News

Enforcement Contact:
Elsa Renzella
Vice President, Enforcement
416 943-5877
[email protected]

Media Contact:
Karen Archer
Senior Media and Public Affairs Specialist
416 865-3046
[email protected]