A hearing panel of the Investment Industry Regulatory Organization of Canada has fined Dax Sukhraj $150,000 for falling to set up proper compliance polices and procedures at Markham, Ont-based Argosy Securities Inc.

Following a disciplinary hearing commenced on September 17, 2008, in Toronto, the hearing panel issued its decision and reasons on Oct. 29, 2008.

The panel found that “from 2003 to 2007 inclusive, Sukhraj, at all material times owner and sole member of the board of Argosy, and, from Aug. 12, 2004 to 2007, an approved person and senior executive of Argosy, engaged in business conduct or practice that is unbecoming and detrimental to the public interest by failing to ensure that Argosy fulfilled representations to the IDA that it would develop and implement policies and procedures to ensure compliance with regulatory requirements”.

Following a penalty hearing on Dec. 8, 2008 and, in a separate penalty decision dated Dec. 31, 2008, the hearing panel imposed the following penalty against Sukhraj:

> a fine in the amount of $150,000, inclusive of costs;

> he must complete the chief compliance officers qualifying examination no later than April 1, 2009; and

> a compliance consultant approved by IIROC be put in place to remain at Argosy for a period of one year to conduct regular evaluations of Argosy’s compliance systems.

The Investment Dealers Association of Canada formally initiated the investigation into the Sukhraj’s conduct on Nov. 30, 2005.

The hearing panel’s decisions and reasons are available at www.iiroc.ca.