Ms. Carmen Crepin reports

ENFORCEMENT NOTICE HEARING - IN THE MATTER OF STEVE DUCHAINE - ADJOURNMENT

A hearing was originally scheduled before a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) in the matter of Steve Duchaine on Oct. 3, 2014. The hearing has been adjourned to Nov. 6 to Nov. 7, 2014.

The discipline hearing concerns allegations that Mr. Duchaine misrepresented the nature of a security to clients, recommended the sale and purchase of a security that was not suitable for a client's time horizon and other securities that were not to the benefit of his clients, and charged unreasonable commissions. Mr. Duchaine also tried to forge a client's signature that was missing on a form.

The hearing is open to the public, unless the hearing panel orders otherwise. The decision of the hearing panel will be made available the IIROC website.

Hearing date:  Nov. 6 to Nov. 7, 2014, at 10 a.m.

Location:  Centre Mont-Royal, Mansfield 5, Room 2200, Mansfield St., Montreal, Que.

Specifically, the allegations are that:

• Between March and August, 2010, Mr. Duchaine misrepresented to several clients that the principal amount of a corporate debenture was 100 per cent guaranteed upon maturity, when it was in fact a non-guaranteed debenture, contrary to IIROC Dealer Member Rule 29.1.
• On Sept. 30, 2010, Oct. 27, 2010, and April 29, 2011, Mr. Duchaine recommended and acquired securities that were unsuitable for a client's investment objectives and time horizon for the purpose of generating commissions, contrary to IIROC Dealer Member Rule 1300.1(q).
• In August, 2011, Mr. Duchaine recommended and substituted bonds in a client's portfolio for the purpose of generating commissions, preferring his own interests ahead of the client's, contrary to IIROC dealer member rules 1300.1(q) and 29.1.
• In April and August, 2010, Mr. Duchaine executed transactions on clients' accounts, charging commissions that were not within the bounds of good business practice, contrary to IIROC dealer member rules 1300.1(o) and 29.1.
• On or around Feb. 23, 2011, Mr. Duchaine tried to forge a client's signature to complete a retirement savings plan application form, which was missing the signature, contrary to IIROC Dealer Member Rule 29.1.

IIROC formally initiated the investigation into Mr. Duchaine's conduct in December, 2012. The alleged violations occurred when Mr. Duchaine was a registered representative with the Quebec City branch of Laurentian Bank Securities Inc., an IIROC-regulated firm. Mr. Duchaine is no longer a registrant with an IIROC-regulated firm.

The notice of hearing which sets out the allegations is available on the IIROC website.

Documents related to continuing IIROC enforcement proceedings, including reasons and decisions of hearing panels, are posted on the IIROC website as they become available.