A hearing panel of the Investment Industry Regulatory Organization of Canada has sanctioned a Calgary man for several violations of IIROC rules.

In the agreement agreement, Paul Ryan Klemke admitted to unauthorized trading in client accounts; violating his know-your-client and suitability obligations in certain trading in client accounts; and trading in a security that was not eligible for distribution.

IIROC began investigation into Klemke’s conduct on May 15, 2008. The violations occurred in March and/or April 2008, when he was a registered representative with a Calgary branch of Jennings Capital Inc..

Specifically, Klemke admitted to:

> making discretionary purchases of a single security in 42 separate client accounts without their knowledge, and/or consent and/or authorization;

> engaging in unauthorized trading by redeeming mutual funds in client accounts without the clients’ knowledge and/or consent and/or prior authorization, in order to fund the above purchases; and

> selling and/or attempting to sell a security to residents of Saskatchewan when it was not eligible for distribution in that province.

Klemke has agreed to pay a $35,000 fine and $5,000 in costs. He has also agreed to being prohibited from reapplying for registration with IIROC until Dec. 15, 2011.

As conditions of re-approval in any category, Klemke will be required to successfully complete the Conduct and Practices Handbook examination and be subject to a one-year period of strict supervision.

Klemke is no longer registered with an IIROC-regulated firm.

IE