A hearing panel of the Investment Industry Regulatory Organization of Canada has imposed penalties against Jory Capital Inc. and Patrick Cooney, Jory’s CEO, president and sole director, for compliance failings.

In a penalty hearing held on January 18, the hearing panel issued Cooney a $100,000 fine and a permanent ban from registration in all capacities with IIROC, with the exception of registered representative, investment representative or trader.

Jory Capital was ordered to pay a $120,000 fine. Jory must also retain a compliance consultant for at least one year, and pay $10,000 in costs. 

Jory and Cooney have indicated that they intend to appeal the penalty decision to the Manitoba Securities Commission.

The penalty follows the panel’s earlier decision, which found that Jory Capital and Cooney violated IIROC rules and the Universal Market Integrity Rules by failing: in the case of Cooney, to take measures to ensure the firm met compliance standards with regard to the monitoring of regulatory capital and the reliability of financial reporting; and, in the case of Jory, by failing to maintain adequate risk adjusted capital.

The violations occurred between 2005 and 2009 when Cooney was registered as director with the Winnipeg office of Jory, an IIROC-regulated firm.. Cooney continues to be registered at the same office.

IIROC formally initiated the investigation into Cooney’s and Jory’s conduct on Sept. 28, 2009.

IE