A former trader has been fined and banned permanently after an Investment Industry Regulatory Organization of Canada (IIROC) disciplinary hearing panel found he violated the terms of a previous disciplinary settlement by trading while suspended and then failed to co-operate with a subsequent regulatory investigation.
Robert Edward Sole, a former trader with W.D. Latimer Co. Ltd., was fined $80,000 and ordered to pay costs of $10,000 after the panel upheld the self-regulatory organization’s disciplinary allegations against him.
The IIROC hearing panel found that Sole took a job with a proprietary trading firm while suspended and began trading for the firm, thereby violating the terms of a 2016 settlement agreement.
According to the panel’s decision, Sole settled allegations of trading misconduct with IIROC in 2016. Specifically, he admitted to prohibited trading activity, such as “spoofing” and “layering.”
In settling that case, he agreed to a one-month suspension, along with a $10,000 fine.
Yet, IIROC alleged that while Sole was suspended, and without notifying his dealer, he took a job with a prop trading firm and used that firm’s direct electronic access to trade while prohibited.
“Having agreed to a suspension and fine resulting from a prior disciplinary action, Mr. Sole then deliberately disregarded his suspension by obtaining employment at a proprietary trading firm without informing his employer of this outside activity” the panel said in its decision. “He then committed a further violation by failing to co-operate with the ensuing IIROC investigation.”
As a result, the hearing panel ruled Sole should be fined once again and banned permanently this time.