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by Mike Caswell
Scotia Capital Inc. denies that it did anything wrong in handling the account of Hans Baan, a client who is suing after the firm allowed him to sell more shares than he owned in a TSX Venture Exchange company. Scotia Capital says that Mr. Baan was only able to sell the shares after circumventing a restriction in its system. In doing so, he sold shares without accounting for a 1:10 rollback that he was well aware of, the firm contends.
The statements from Scotia Capital come in response to a lawsuit that Mr. Baan filed in the Supreme Court of British Columbia on Sept. 24, 2018. He complained that Scotia Capital allowed him to sell 752,270 shares of New Carolin Gold Corp., when he actually owned just 75,227. He claimed to be unaware that the stock had rolled back 1:10 just before he placed the sell order. He further complained that Scotia Capital sold other shares in his account to cover the shortfall that resulted from the errant trade.
While Mr. Baan blamed Scotia Capital for the error, the firm says that the problem was entirely his doing. In a response filed on Nov. 2, 2016, Scotia Capital explains that Mr. Baan was a knowledgeable investor and had been a client since 2002. He regularly traded through Scotia Capital's on-line service, iTRADE.
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