(October 3 – 15:45 ET) – The Canadian Venture Exchange Inc. has reached a settlement with Michael George Sikula. Sikula, at the time of the infractions, was an investment advisor at Georgia Pacific Securities Corp.
During the period May 1997, through August 1998, Sikula conducted 67 discretionary trades in shares of VSE listed, ASE listed, and U.S. OTC Bulletin Board securities in two client accounts. The trades created debits totalling $63,366.
Sikula conducted 55 discretionary trades in one client account without receiving the client’s written authorization. Nor had Georgia Pacific accepted the client’s account as discretionary. Some of the discretionary trades resulted in losses, which Sikula covered by making two cash deposits in the client account
Sikula also conducted 12 unauthorized trades the account of a second client without the second client’s knowledge or authorization. Sikula had not received the secondCclient’s written authorization to exercise discretion over the account and Georgia Pacific had not accepted the second client’s account as discretionary.
Sikula was fined $15,000, ordered to pay disgorgement and $1,500 towards the cost of the investigation, and had his exchange approval withdrawn for 18 months starting September 20. Sikula must re-write and pass the Conduct and Practices Handbook exam should he re-enter the industry.
No fault was attributed to Georgia Pacific.
-IE Staff