A former broker has been sanctioned by the Nova Scotia Securities Commission for his failure to pay fines levied by the Investment Dealers Association.

The NSSC issued an order today, as part of a settlement agreement, finding that a former broker acted “contrary to the public interest” by failing to pay penalties assessed by the IDA. He was ordered to pay an administrative penalty in the amount of $5,000, and costs of $1,500.

The broker was the subject of disciplinary proceedings before a panel of the IDA’s Nova Scotia District Council in 2001. It imposed fines totaling $47,500, a disgorgement order of $6.375.62, and costs of $25,000, among other sanctions.

The settlement notes that although the IDA has formally demanded payment of the $78,875.62 total, none has been forthcoming. The former broker filed for bankruptcy on March 31.

According to the settlement, the broker admits that he has not complied with the IDA order, and without addressing the merits of the SRO order, decision or ruling, he joins with the commission staff’s submission that this matter should be adjudicated and disposed of in accordance with the proposed settlement.

Commission staff allege that failing to comply with the, “ruling of the SRO, notwithstanding requests made by the SRO for compliance, undermines the integrity and efficacy of the SRO regulation and discipline of capital market participants. This has a direct effect on the integrity and reliability of regulatory and enforcement efforts effecting Nova Scotia investors and is in contravention of the Act. The principles of general and specific deterrence mandate that such conduct must, in the public interest, have consequences that cannot be avoided by abandoning responsibilities and undertakings given in a regulated undertaking to the recognized SRO under the Act.”

Under the terms of the settlement, he admits the NSSC’s allegations and consents to the commission’s order.