(September 21 – 18:45 ET) – The Canadian Venture Exchange has fined a former Vancouver rep for breaching the by-laws and rules of the Vancouver Stock Exchange. David Miller receives a $20,000 fine, is banned from trading on the CDNX for three years and must pay investigative costs in the amount of $10,000.
During the period of May 20, 1993 to January 27, 1994, Miller was employed as an advisor with the Yorkton Securities Inc., Pacific InternationalSecurities Inc. and Canaccord Capital Corp.
Miller opened an account for a client who was a Lebanese national living in Beirut, Lebanon. Miller completed the client’s New Client Application Form and listed a temporary address at a Canadian post office in Vancouver. The client’s resident address was noted as an apartment in Beirut, that was later determined to be owned by a principal of VSE-listed International Hi-Tech Industries Inc.
Miller also executed client buy orders for his client accounts in the shares of Hi-Tech which the CDNX considered to be “high close” trades.
Miller executed high close trades on 71 days. These trades accounted for 83% of the high close trades for the shares of Hi-Tech. Of the 71 trades, 45 of them established the day high price for the shares of Hi-Tech. The client account was responsible for 85% of the high close trades and 42 of the client trades established the day high price.