(August 9 – 17:00 ET) – At a hearing today, the Ontario Securities Commission approved a settlement with boiler room Gordon-Daly Grenadier Securities, and its principals David Bregman, Alan Greenberg, Oron Sternhill and Wangyal Tulotsang.
The agreement is similar to the settlement with Price Warner last week. In this case the commission reprimanded Gordon-Daly and its officers. It gave the firm 30 days to wind up its business, and transfer its clients to other IDA members.
Bregman is suspended for 16 years, and Greenberg and Sternhill are suspended for 15 years. All three are prohibited from applying for registration, acting as an officer, or owning collectively more than 20% of a reporting issuer. They are also banned for life from managing a registrant, or collectively owning more than a 20% in any registered firm. Bregman and Sternhill have been banned from trading for three years, Greenberg for a year.
Tulotsang is suspended for two years. Many of the other conditions also apply to him, and he is required to complete certain securities courses before applying for registration.
The respondents have agreed to pay $25,000 toward the commission’s costs.
In the settlement the respondents admitted that they, “did in fact fail to deal fairly, honestly and in good faith with their clients, and did breach Ontario securities law in this respect, and that they did not, in fact, act in the best interests of their clients”.
They acknowledged selling 13 issues with excessive markups (between 56% and 324%) from its inventory and that more than 90% of its revenue came from principal trading. Gordon-Daly’s gross revenue from this business was approximately $31 million. The respondents also admitted that Gordon-Daly failed to keep proper books and records.
-IE Staff