The Investment Industry Regulatory Organization of Canada (IIROC) has fined a former Montreal rep $35,000 for entering fictitious trades.

Following a disciplinary hearing held in July 2012 in Montreal, an IIROC hearing panel found that Jean-François Lemay simultaneously entered buy and sell orders for the benefit of the same person, thereby creating fictitious trades for the purchase and sale of these securities on the TSX Venture Exchange.

The violation occurred when Lemay was a registered representative with the Montreal branch of Union Securities Ltd. between 2004 and 2009.

Following a penalty hearing held on March 15, the hearing panel imposed the following penalty on Lemay:

  • a suspension of access to the marketplaces for a period of six months, beginning March 15, 2013;
  • a fine of $35,000;
  • strict supervision by his employer for a period of 12 months, should he return to employment by an IIROC-regulated firm; and
  • successful completion of the Conduct and Practices Handbook Course.

Lemay was also ordered to pay IIROC $25,000 in costs. He is no longer a registrant with an IIROC-regulated firm.