The Investment Industry Regulatory Organization of Canada (IIROC) has permanently banned a former Toronto rep for excessive trading in an elderly client’s account.

An IIROC hearing panel accepted a settlement agreement between IIROC staff and Harry Newman, on September 24.

Newman admitted that between June 2007 and April 2010, while he was registered representative with a sub-branch of the Toronto branch of Mackie Research Capital Corp., he engaged in excessive trading in an elderly client’s account which was not within the bounds of good business practice and was unsuitable.

Newman agreed to the penalty of a permanent prohibition from approval for registration with IIROC. He also agreed to pay costs in the amount of $5,000.

IIROC says it is also significant that, separate from IIROC and prior to the settlement hearing, Newman personally paid $680,000 toward a settlement of the elderly investor’s civil claim.

IIROC formally initiated the investigation into Newman’s conduct in November 2010. He is no longer a registrant with an IIROC-regulated firm.