The Investment Industry Regulatory Organization of Canada has fined a former Montreal broker $30,000 for unauthorized and excessive trading in client accounts.
An IIROC hearing panel has accepted a settlement agreement between IIROC staff and Melkon Melkonian.
Melkonian admitted that from August 2004 to June 2009, he effected discretionary transactions in the joint accounts of two clients, without either of those accounts having been previously authorized by the firm as discretionary accounts.
In addition, Melkonian admitted that from 2005 to 2008 inclusive, he engaged in unsuitable and improper sales practices by excessively trading in the joint accounts of both clients without proper consideration of the clients’ best interest.
Melkonian agreed to $30,000 fine and having his registration in any capacity suspended for a three-year period. He also agreed to pay $5,000 in costs.
IIROC formally initiated the investigation into Melkonian’s conduct in September 2009.The violations occurred when he was a registered representative with the Montreal branch of Canaccord Capital Corp. He is no longer a registrant with an IIROC-regulated firm.