The Investment Dealers Association of Canada has imposed discipline penalties on Paul Paliotti, including a $300,000 fine. Paliotti is also permanently prohibited him from approval, in any capacity, with an IDA member.

Paliotti who was a registered rep with the Montreal branch office of RBC Dominion Securities Inc is required to pay $28,501 in costs..

In its decision, following a disciplinary hearing held on August 16 and 30, 2004, the IDA found Mr. Paliotti guilty of several violations.

He was found to have engaged in discretionary trading in the accounts of eight clients over a period of approximately two years without the clients’ written
authorization and without such accounts being specifically approved and accepted in writing as discretionary accounts.

He also was found to have failed to use due diligence to ensure that the trading on the accounts of eight clients was appropriate for the clients and in keeping with their real investment objectives and risk tolerance.

Paliotti has not been registered with an IDA member since his dismissal from RBC on January 9, 2003.