A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has fined and suspended an ex-Northern Securities Inc. broker for failing in his role as gatekeeper in the capital markets.

The panel accepted a settlement agreement between IIROC staff and Ross Patrick Ewaniuk, in which Ewaniuk admitted to breaching his gatekeeper duties with respect to transactions in certain stocks.

Ewaniuk has admitted that between 2004 and 2006, while registered at Northern Securities, he facilitated and participated in transactions of three U.S. pink-sheet stocks — Sure Trace Security Corporation, Tango Incorporated and Victory Capital Holdings Corporation — in four client accounts and Ewaniuk’s corporate investment account.

Ewaniuk failed to make adequate inquiries as to whether or not the securities: were eligible to be distributed by the seller and/or transferor; were eligible for purchase or receipt by the clients and his corporate investment account; and were eligible for sale into the market.

The sanctions Ewaniuk agreed to as part of the April 29 settlement include: a $27,500 fine; a one-year suspension of his registration; and as a condition of his re-approval, the successful completion of IIROC’s Conduct and Practices Handbook examination and one year of strict supervision.

The agreement also stipulates. Ewaniuk pay a portion of IIROC’s legal costs, totaling $5,000.

Ewaniuk is no longer a registrant with an IIROC-regulated firm.

IE