(November 9 – 15:30 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed a $50,000 fine on John Aiken, a former rep with ScotiaMcLeod Inc.

The IDA found that between September 1993 and September 22, 1995, Aiken had an undisclosed beneficial interest in an account with Sanwa McCarthy Securities Inc. without the knowledge or written permission of his employer firm. The account belonged to John Springer.

During this period, Aiken placed fictitious “air-trade” bond orders and misused his non-trading wash account at ScotiaMcLeod in order to facilitate and conceal bond trades that he effected for his own benefit and for the benefit of Springer.

The IDA says Aiken and Springer embarked upon a scheme whereby they participated in bond trading for their own personal benefit and concealed the activity from their member firms. Aiken utilized a non-trading wash account to facilitate the trades. The profits realized were split between Aiken and Springer, 25% and 75%, respectively, with Springer paying taxes of approximately 50%.

Besides the $50,000 fine, Aiken is permanently prohibited from receiving approval of the IDA in any capacity; and must pay the association $10,000 in investigation costs.
-IE Staff