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by Mike Caswell

Former Thompson Kernaghan & Co. chairman Mark Valentine, who pleaded guilty to fraud charges in the United States in 2004, is in the midst of another legal dispute. A California judge has ordered him and others to pay a brokerage $19.8-million for a trade that went horribly awry. (All figures are in U.S. dollars.) The brokerage claimed that it was left holding a large block of worthless shares and that Mr. Valentine and others were at fault.

The order comes as part of a case brought by U.S. brokerage BTIG LLC. In a petition filed on Feb. 3, 2017, in Los Angeles it sought payment from Mr. Valentine and others over a trade entered on Oct. 31, 2013. According to the petition, on that date a BTIG client named Floyd Associates Inc. placed a large buy order. The order was for 426 million shares of a company trading on the Indonesian Stock Exchange under the symbol GAMA (that symbol belongs to Gading Development Bank Tbk). Within minutes of the trade, the value of the shares began to fall precipitously, and eventually the stock became worthless.

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