(February 8 – 14:40 ET) – The Ontario District Council of the Investment Dealers Association of Canada has imposed discipline penalties on James Joseph McHugh.

On January 27, 2000, the District Council accepted a settlement agreement that had been negotiated by the IDA Enforcement Division staff with McHugh. Under the settlement agreement McHugh admitted that he had engaged in conduct unbecoming a registered representative by:
a) obtaining a loan for personal use from a client in the sum of $30,000;
b) facilitating a beneficial purchase of shares for a client in a corporation whose shares were not available to the general public; and
c) failed to disclose to Equion his personal dealings with the client, contrary to Association By-law 29.1.

The discipline penalties assessed against Mr. McHugh are a fine of $20,000, a suspension from acting in any supervisory capacity for a period of seven years, a requirement that he rewrite and pass the examination based on the Conduct and Practices Handbook for Securities Industry Professionals, and a requirement that he be closely supervised for a period of twelve months.

In addition, Mr. McHugh is required to pay $2,750 toward the Association’s costs of investigation of this matter. Mr. McHugh is currently employed with Equion Securities
Canada Ltd. at its Whitby branch office.

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The Ontario District Council of the Investment Dealers Association of Canada has imposed discipline penalties on Stefan Varga.

On January 27, 2000, the District Council considered, reviewed and accepted a settlement agreement that had been negotiated by the IDA Enforcement Division staff with Varga.

Under the settlement agreement Varga admitted that he had exercised his discretion to effect trades in securities on behalf of a client without having prior written authorization of the clients and without the account having been approved for discretionary trading by the Member firm contrary to Regulation 1300.4.

The discipline penalty assessed against Varga is a fine of $5,000. In addition, Varga is required to pay $1,500 toward the Association’s costs of investigation of this matter. Varga is currently employed with Nesbitt Burns Inc. in its Toronto office.
-IE Staff