A hearing panel of the Investment Industry Regulatory Organization of Canada has expelled Credifinance Securities Limited and suspended three of its former registered representatives in connection with trading in the shares of Magnum D’Or Resources Inc. and Osprey Gold Corp.

IIROC also imposed fines against the reps and the firm totaling $400,000.

The hearing panel found that Georges Benarroch and Linda Kent, while registered representatives in the Toronto branch of Credifinance, failed to properly perform their gatekeeper responsibilities in connection with trading in client accounts in the shares of Magnum and Osprey.

The former reps also engaged in financial and business transactions with Credifinance clients in relation to the distribution and sale of shares of Magnum and Osprey, according to IIROC.

The regulator also found that Marjorie Ann Glover, while a registered rep and chief compliance officer in the Toronto branch of Credifinance, failed to exercise due diligence and failed to adequately supervise the conduct of Benarroch and Kent.

Credifinance also failed in its role as a gatekeeper in that it failed to supervise the conduct of Benarroch and Kent, and the transactions in their clients’ accounts, IIROC said.

Benarroch, Kent and Glover are no longer registrants of an IIROC-regulated firm.

Benarroch has been suspended for life and is assessed a fine of $250,000, and must disgorge all profits on these transactions, IIROC said.

Kent has been suspended for 10 years, is assessed a fine of $50,000, and must also disgorge all profits on these transactions.

Glover has been suspended for five years and is assessed a fine of $50,000.

Credifinance Securities has been fined $50,000 and is expelled forever.

In addition, the firm and the former reps are required to pay joint costs of $100,000.

IE