The Ontario Securities Commission has approved a settlement agreement between staff of the commission and Lloyd Bruce regarding the failure of Buckingham Securities Corp. to segregate fully margin securities owned by its clients, and to maintain adequate capital.
Back in April 2004, OSC staff alleged that during the period from March 1997 to July 2001 Buckingham failed to segregate fully paid or excess margin securities owned by its clients, failed to maintain adequate capital at all times, and failed to keep such books and records.
Staff has alleged further that for the fiscal years ending March 31, 1999 and March 31, 2000, Buckingham made statements in required reports that were misleading or untrue.
OSC staff alleged that the firm’s executives, Lloyd Bruce, David Bromberg and Norman Frydrych authorized, permitted or acquiesced in Buckingham’s violations.
Staff further alleged that between August 2000 and July 2001, Bruce failed to adequately supervise the accounts of broker Brian Verbeek, and Verbeek’s actions in relation to his accounts regarding RRSP schemes.
Buckingham was registered under Ontario securities law as a securities dealer until its registration was suspended on July 6, 2001.
In the settlement agreement approved by the Commission, Bruce made admissions that he authorized, permitted or acquiesced in Buckingham’s violations of the requirements of Ontario securities law outlined above, and that his conduct was contrary to the public interest.
As a term of the settlement, Bruce filed a written undertaking with the Commission that he will never apply for registration in any capacity under Ontario securities law, and that he will never have any ownership interest, directly or indirectly, in any registrant.
The sanctions ordered by the Commission include:
The panel, comprised of Commissioner Paul Bates and Commissioner David Knight, approved the settlement as being in the public interest.
The OSC reached a settlement agreement reached by with Bromberg in April 2004.