A hearing panel of the Investment Industry Regulatory Organization of Canada has fined a Quebec man $35,000 for violating IIROC by-laws.

IIROC formally initiated the investigation into Éric Couture’s conduct on March 17, 2006. The violations occurred when he was a registered representative with the Montreal branch of iForum Securities Inc.

Couture admitted to two violations.

In November 2005, Couture had under his responsibility the accounts of approximately 35 clients of B2B Trust. These clients held promissory notes from MRACS Management Ltd. and Real Vest Investments Ltd. with an approximate book value of $1.5 million, without the securities being recorded in the books of iForum Securities Inc., contrary to IIROC by-laws.

Between December 2004 and October 2005, Couture failed to inform his clients of the existence of a conflict of interest between iForum Securities Inc. and Mount Real Corporation before they purchased or renewed various promissory notes from MRACS Management Ltd. and Real Vest Investments Ltd., again contrary to IIROC by-laws.

On October 20, the hearing panel imposed the following penalty against Couture:

• a $35,000 fine;

• the requirement that he repeat and pass the Conduct and Practices Handbook Course, administered by the Canadian Securities Institute, within six months, as a condition for the maintenance of his approval as a registered representative; and

• a period of strict supervision for 12 months and the requirement that strict supervision reports be submitted monthly to the IIROC Registration Department, as conditions for the maintenance of his approval as a Registered Representative.

Couture is currently employed as a Registered Representative at the Laval Branch of Laurentian Bank Securities Inc., an IIROC-regulated firm.

The settlement agreement and the hearing panel’s Decision and Reasons are available at www.iiroc.ca.