The Investment Industry Regulatory Organization of Canada has found that two registered representatives at Golden Capital Securities Ltd. failed to properly perform their roles as gatekeeper to the capital markets.

Following a disciplinary hearing held on December 1-5 and 8-10, 2009, in Vancouver, an IIROC hearing panel found that:

• between January and December 2004, Konstantinos Georgakopoulos facilitated certain transactional activity in certain client accounts without making diligent inquiries to ensure the legitimacy of the transactions in circumstances which should have called the transactional activity into question because it was peculiar, suspicious or appeared to be consistent with market manipulation, deception or other improper market related activity.

IIROC formally initiated the investigation into the Georgakopoulos’ conduct on Aug. 29, 2006. The violations occurred when he was an RR with the 1177 West Hastings Street Branch of Golden. The Respondent is currently registered with the 595 Burrard Street Branch of Global Securities Corp.

The hearing panel issued its decision and reasons on May 20.

Separately, Following a disciplinary hearing held on May 12-13, 2009, in Vancouver, an IIROC hearing panel found that:

• in or about January and February 2005, John Anastasious Collias failed to to make diligent inquiries to ensure that he learned about the essential facts of two clients with respect to the opening of their accounts; and facilited certain transactional activity in three client accounts without making diligent inquiries to ensure the legitimacy of the transactions in circumstances which should have called the transactional activity into question because it was peculiar, suspicious, or appeared to be consistent with market manipulation, deception, or other improper market-related activity.

IIROC formally initiated the investigation into the Cllias’ conduct on Aug. 29, 2006. The violations occurred when he was a Registered Representative with the 1177 West Hastings Street Branch of Golden. Collias is no longer a registrant with an IIROC-regulated firm.

The hearing panel issued its decision and reasons on May 26.

Penalty hearings for both men are scheduled to held in Vancouver in July and August.

IE