(April 6 – 17:50 ET) – At a hearing today, the Ontario Securities Commission approved a settlement entered into between Staff of the Commission, A.C. MacPherson & Co. Inc., and Geno Della Rocca. A.C. MacPherson is an investment dealer and a member of the Investment Dealers Association. Della Rocca is the president and chief executive officer of the firm.

Enforcement staff alleged that in 1996 and 1997, A.C. MacPherson’s business consisted almost exclusively of acquiring stock in a very limited number of companies and then selling that stock to the firm’s own clients. Staff alleged that in the case of two companies, A.C. MacPherson acquired the stock at a significant discount to the market price, and that it then imposed excessive markups on those shares before reselling the shares to its own clients. The firm made a profit of several million dollars in each case.

In approving the settlement, the Commission found that A.C. MacPherson stood in a position of trust with its clients. Imposing excessive markups in the manner admitted by A.C. MacPherson led to a substantial risk that there was a fundamental conflict of interest with its clients, say the OSC. Della Rocca admitted that by allowing A.C. MacPherson to engage in this conduct, he acted contrary to the public interest.

The Commission reprimanded both A.C. MacPherson and Della Rocca. The Commission ordered that the registration of A.C. MacPherson will be suspended effective July 5, 2000, and that A.C. MacPherson is to wind up its business by that time. The Commission also imposed interim terms and conditions on the firm’s registration, to ensure that the firm’s affairs are wound up in an orderly manner, and in a way that will offer the best possible protection to clients of the firm.

Della Rocca is prohibited, for a period of fifteen years, from applying for registration in any capacity with the Commission, or for acting as a director or officer of a reporting issuer. Della Rocca is prohibited for the rest of his life from being involved directly in the management of a registrant, and is prohibited for the rest of his life from owning, directly or indirectly, more than a 20% interest in any registered firm.

The respondents were ordered to pay the sum of $25,000 to the Commission in respect of a portion of the Commission’s costs of investigating the matter.
-IE Staff