(July 27 – 17:20 ET) – The Ontario Securities Commission is reporting allegations and a settlement against alleged boiler room brokerage Gordon-Daly Grenadier Securities and its principals.
The OSC has scheduled a hearing to consider this settlement on August 9. Named in allegations out today are David Bregman, registered as an officer and the “executive partner” of Gordon-Daly, Alan Greenberg, also an officer, Oron Sternhill, another officer and “executive partner”, and Wangyal Tulotsang, who was an officer, controller and compliance officer from March 10, 1998 to December 16, 1999.
The OSC alleges that from 1996 to 1999 the firm acquired stock in thirteen issuers trading on the Canadian Dealing Network Inc. and resold the stock to clients at excessive mark-ups. OSC staff allege that in excess of 90% of Gordon-Daly’s revenue was earned from principal trading in these issuers at markups ranging from 56% to 324%. They say Gordon-Daly’s gross revenue from principal trading was approximately $31 million.
OSC staff allege that by engaging in this conduct, Gordon-Daly and its officers may have failed to deal fairly, honestly and in good faith with their clients. They also allege that for eight of the 13 issuers for which Gordon-Daly was market-maker, the promoter of the issuer was Harry Bregman, the original founder of Gordon-Daly, the father of David Bregman, and the father-in-law of Oron Sternhill. Finally, staff alleges that Gordon-Daly failed to keep proper books.
Price Warner another alleged boiler room is facing similar charges.
-IE Staff