The Quebec District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Michel L. Côté, at the relevant time the president and a registered representative of Alpha Capital Inc.

Pursuant to a settlement agreement with the IDA, Côté admitted that he failed to learn the essential facts relative to the acceptance of an account for a client, to properly complete the new account application form, and to use due diligence to ensure that the acceptance of an order for this account was within the bounds of good business practice.

Côté also admitted having opened an account for a corporation without learning the essential facts relative to this account and obtaining the necessary documentation, and having accepted the instructions of a third party to execute trades for this account, without the benefit of a duly executed proxy.

Côté must pay a $15,000 fine, and is also required to pay $2,687.50 towards the IDA’s costs of investigation.