A panel of the Ontario Securities Commission today approved a settlement agreement between staff and Roger Chiasson ordering that trading in any securities by Chiasson cease for twelve years.

Chiasson may trade securities in his RRSP account through a registered dealer after three years. The OSC also ordered that Chiasson is prohibited for twelve years from acting as an officer or a director of any reporting issuer.

Chiasson has never been registered with the OSC, but was, during the material time, licensed with the Financial Services Commission of Ontario. He solicited his life insurance clients to purchase units in the North George Capital Limited Partnerships and promissory notes in Lionaird Capital Corp. Twenty-five clients invested in excess of $585,000 in these products.

Chiasson engaged in unregistered trading, and participated in the illegal distributions, of the North George and Lionaird securities. Among other things, Chiasson failed to conduct the appropriate due diligence and made misrepresentations to clients.

Chiasson failed to inform his clients that he would earn a “finder’s fee”, continuous trailer fees and a share in any bonuses paid on their investments. At the time that the investments collapsed, he had received approximately $28,500.

Chiasson’s conduct was “greatly troubling” said Lorne Morphy, chair of the Commission panel. Commissioner Morphy reprimanded Chiasson noting that he abused the fiduciary trust that his clients held in him.

Copies of the Notice of Hearing, Statement of Allegations of Staff of the Commission, Settlement Agreement and Order approving the settlement are available on the Commission’s Web site.