A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement between IIROC staff two Vancouver brokers regarding shares of Vancouver-based mining company Aberdene Mines Ltd.

In October 2007, the former president of Aberdene paid a $50,000 fine and had his ability to participate in the province’s capital markets limited for two years by the British Columbia Securities Commission after he admitted to approving the dissemination of an investor relations newsletter and press releases that contained misleading statements.

IIROC formally initiated the investigation into the respondents’ conduct on Jan. 27, 2005. The alleged violations occurred when Mark Andrew Reynolds was a registered representative with the No.564-1055 Dunsmuir Street branch of Research Capital Corp. and Lawrence Bradley Chang was a registered rep with the No.1077-777 Dunsmuir Street branch of Wolverton Securities Ltd.

In the settlement agreement:

• Reynolds admitted that he accepted orders to buy and sell shares of Vancouver-based mining company Aberdene Mines Ltd. in client accounts without reasonably informing himself of the essential facts relative to his clients’ orders and without assuring himself the transactions were not being effected for improper purposes, in circumstances which necessitated such inquiries; and

• Chang admitted that he accepted orders to buy and sell shares of Aberdene in client accounts without making reasonable or diligent nquiries that were reasonably necessary to inform himself of the essential facts relative to his clients and their orders and to assure himself that the transactions were suitable for his clients in the circumstances which necessitated such inquiries.

The hearing panel imposed the following penalties against the respondents:

• Reynolds will pay a fine of $40,000;
• Chang will pay a fine of $30,000; and
• Reynolds is suspended from approval in any registered capacity with IIROC for a period of six months.

The hearing panel also required Reynolds and Chang to pay costs in the amount of $2,000 each for a total of $4,000.

Reynolds is no longer registered in any capacity with an IIROC dealer member. Chang is currently a registered rep at the No.2200-609 Granville Street Branch of Canaccord Capital Corp. in Vancouver.

The Hearing Panel accepted the settlement agreement on Nov. 10., and issued its reasons and decision on Nov. 23.

IE