A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement entered into between IIROC staff and Dwight Allen Stirrett.

IIROC formally initiated the investigation into the Stirrett’s conduct on Nov. 28, 2008. The violations occurred when he was a registered rep, president & CEO, and ultimate designated person with Prodigy Wealth Management Corp., an investment dealer located in Kelowna, B.C.

Stirrett is currently in the industry in the same registered capacity with Prodigy.

Stirrett admitted that facts were misrepresented to clients and employees of Prodigy in a May 31, 2007 letter that gave a false reason for him being absent from Prodigy’s office for a period of two months during the summer of 2007.

Stirrett also admitted that he failed to adequately attend to his business as a registered rep; his supervisory duties as president, CEO and UDP of Prodigy; and to the business of Prodigy between October 2008 and December 2008.

At a hearing held on March 6, 2009, the panel ordered Stirrett to pay the sum of $25,000, of which $5,000 is for IIROC staff’s investigation and prosecution costs. The panel said Stirrett’s admitted contraventions would have carried a significantly greater fine if not for the following mitigating factors:

> his ability to carry out his administrative responsibilities was, at the material times, severely inhibited by his consumption of prescribed medication; and

> in the very early stages of IIROC’s investigation Stirrett agreed to pay for, and comply with, all aspects of a monitored treatment program that is acceptable to IIROC staff;

The panel also ordered Stirrett to pay for, and comply with, a monitored treatment program that is acceptable to IIROC Staff until such time as the monitoring professional recommends.

He must provide IIROC staff with a letter attesting to his compliance with the treatment program on a monthly basis.

If Stirrett is not in compliance with the program, IIROC staff may suspend his registration without giving him an opportunity to be heard.

Stirrett’s registration will be subject to strict supervision for an indefinite period of time, and for as long as IIROC staff, deems necessary based on the his compliance with the treatment program.

The hearing panel said it will issue its reasons for its decision in due course.

The settlement agreement is available at www.iiroc.ca.

IE