TORONTO, Feb. 13, 2012 /CNW/ - A Hearing Panel of the Investment
Industry Regulatory Organization of Canada (IIROC) has accepted a
Settlement Agreement, with sanctions, between IIROC staff and Barret
Capital Management Inc. (Barret), Jamie Cohen and Idan Cohen.
Barret, Jamie Cohen and Idan Cohen admitted that, between 2009 and 2011,
they improperly used a trade allocation account to allocate trades to
certain clients to the detriment of other clients, misled numerous
clients and failed to have adequate compliance supervision.
Specifically, Barret, Jamie Cohen and Idan Cohen admitted to the
following violations:
Between September 2009 and December 2011, while Barret was a Dealer
Member and Jamie Cohen and Idan Cohen were Registered Representatives,
they failed to observe high standards of ethics and conduct in the
transaction of their business, and engaged in business conduct or
practices which are unbecoming or detrimental to the public interest,
contrary to IIROC Dealer Member Rule 29.1, in that they:
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(a)
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improperly used an allocation account and other accounts to allocate
trades to certain clients, to the detriment of other clients;
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(b)
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misled numerous clients as to the positions in their accounts and the
value of their accounts; and
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(c)
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failed to have adequate compliance supervision, internal controls and
books and records.
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Pursuant to the Settlement Agreement, Barret, Jamie Cohen and Idan Cohen
agreed to the following penalties:
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(a)
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Barret's Membership is immediately suspended;
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(b)
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Barret will immediately cease dealing with the public;
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(c)
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IIROC staff may undertake any action with Barret's carrying broker,
Laurentian Bank Securities Inc., to facilitate the orderly transfer of
client accounts from Barret in a manner consistent with applicable law;
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(d)
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Barret's rights and privileges of Membership are terminated as of 30
days from the date of acceptance of this Settlement Agreement;
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(e)
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Barret is expelled from the Corporation as of 30 days from the date of
acceptance of this Settlement Agreement;
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(f)
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Jamie Cohen is prohibited from approval for registration with IIROC at
any time within 20 years of the date of acceptance of this Settlement
Agreement;
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(g)
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Jamie Cohen will pay IIROC a fine in the amount of $50,000;
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(h)
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Idan Cohen is prohibited from approval for registration with IIROC at
any time within 20 years of the date of acceptance of this Settlement
Agreement; and
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(i)
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Idan Cohen will pay IIROC a fine in the amount of $50,000.
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Barret, Jamie Cohen and Idan Cohen also agreed to pay costs in the
amount of $125,000.
The Settlement Agreement is available at
http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=AA317169816343B4AED1446847A867D6&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.
IIROC formally initiated an investigation into the conduct of Barret,
Jamie Cohen and Idan Cohen in March 2011. The violations occurred
while Barret was an IIROC- regulated firm and the Cohens were
Registered Representatives with Barret.
* * *
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.