(July 13 – 10:55 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Randall Harrett.
Under the settlement agreement. Harrett agreed that he improperly attempted to transfer corporate funds to a client account to eliminate a debit balance he had inadvertently created.
The error occurred in October 1997 while Harrett was a Registered Representative and Chief Financial Officer with Nikko Securities Co. Canada Ltd. A cancellation order for a stock purchase was not executed properly. The shares subsequently were placed in a client account that should have been reconciled by Harrett immediately.
Harrett failed to properly reconcile this account and erroneously placed the shares in the account of the client who cancelled the order. When the error was later discovered by Nikko staff, he attempted to transfer corporate funds to the client account to conceal the error.
Harrett was fined $20,000. He is suspended from receiving approval from acting as an officer with any IDA member for 10 years, commencing Dec. 28, 1998. Should he seek reregistration for IDA approval, he must rewrite and pass the Conduct and Practices Handbook examination administered by the Canadian Securities Institute.
For a complete Summary of Facts, please see IDA Disciplinary Bulletin No. 2742 at www.ida.ca.
-IE Staff