The Ontario Securities Commission today released its decision and reasons for imposing sanctions on Ontario broker Brian Verbeek.
Between August 2000 and July 2001, Verbeek, who was a registered representative with Buckingham Securities Corp. ran an RRSP scheme,
The Commission ordered that:
- Verbeek’s registration is terminated;
- he cease trading permanently, except that he may trade for the purposes of his own RRSP;
- exemptions available under Ontario securities law will not apply to him;
- Verbeek must resign as a director or pfficer of any issuer and is prohibited from holding such positions in the future;
- Verbeek is reprimanded; and;
- Verbeek pay $94,618.75 in costs.
On July 26, 2005, the OSC found that Verbeek participated in a scheme in which holders of locked-in RRSPs purchased securities in Canadian Controlled Private Corporations (CCPCs) in exchange for loans from the CCPCs for 60% to 80% of the share purchase price.
The holders were mainly low-income, unsophisticated investors having few investments beyond their locked-in RRSPs. The commission found, among other things, that Verbeek failed to consider the holders’ investment needs and the suitability of the high-risk CCPC securities.