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IIROC fines Fridgant for fake portfolio statements

2014-10-31 11:02 ET - News Release

Ms. Elsa Renzella reports

ENFORCEMENT NOTICE - DECISION - THE MATTER OF MARK FRIDGANT - DISCIPLINE DECISION - LIABILITY AND PENALTY

Following a disciplinary hearing held on Aug. 26, 2014, in Toronto, Ont., a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) found that Mark Fridgant was liable of providing fictitious portfolio statements to two sets of clients, and making inaccurate statements about and misrepresenting the holdings of these clients when questioned by representatives of his dealer member firm.

The hearing panel's decision, dated Oct. 10, 2014, is available at 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.

Specifically, the hearing panel found that Mr. Fridgant committed the following violations:

  1. Between November, 2005, and November, 2012, Mr. Fridgant provided fictitious portfolio statements to two sets of clients, which misrepresented the total value of their account holdings, contrary to IIROC dealer member rule 29.1 (IDA bylaw 29.1 prior to June 1, 2008);
  2. In November, 2012, Mr. Fridgant made inaccurate statements and misrepresented the holdings of these clients when questioned by representatives of his dealer member firm, contrary to IIROC dealer member rule 29.1 (IDA bylaw 29.1 prior to June 1, 2008).

The hearing panel imposed the following penalties on Mr. Fridgant:

  1. A permanent bar on his approval with IIROC;
  2. A global fine in the amount of $75,000.

Mr. Fridgant is also required to pay costs in the amount of $50,000.

IIROC formally initiated the investigation into Mr. Fridgant's conduct in February, 2013. The violations occurred while he was a registered representative with the Toronto, Ont., branches of PI Financial Corp., Jennings Capital Inc. and Canaccord Capital Corp., all IIROC-regulated firms. Mr. Fridgant is no longer a registrant with an IIROC-regulated firm.

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