A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has permanently banned a Calgary man and fined him $100,000 for violating IIROC by-laws and securities legislation.

A disciplinary hearing was held in June 2007, in Calgary, and the hearing panel issued its decision and reasons on Nov. 3, 2007.

The penalty hearing took place in Calgary on April 28, 2008, and the panel released its decision on Nov. 24, 2008.

The Investment Dealers Association of Canada formally initiated the investigation into the conduct of Robert William Boswell during 2003. The violations occurred when Boswell was a registered representative with the Calgary offices of two member firms — Research Capital Corporation and Jennings Capital Inc.

In its decision, the hearing panel found that:

> Boswell made over 350 trades in the accounts of 27 clients without the prior knowledge and consent of the clients;

> Boswell offered to compensate a client for his investment losses and made a misrepresentation to the client that Research Capital would participate in reimbursing the client. He provided the client with a series of post dated cheques which were not honoured when presented to be cashed;

> Boswell traded out of the province of his registration with a total of 18 clients;

> Boswell made misrepresentations to a client as to their proper account balance; and

> Boswell was requested to provide records relating to the investigation into his conduct in this matter. He failed or refused to cooperate with the investigation and provide the requested records.

The panel imposed a permanent ban on Boswell’s registration in any capacity with IIROC, a global fine of $100,000; and required him to pay costs in the amount of $25,000.

Boswell is no longer a registrant with an IIROC regulated firm.

The hearing panel’s decisions and reasons are available on IIROC’s Web site.

IE