MRP CEO now ALN CEO news FYI IIROC files action against Canaccord ex More
2013-12-09 10:28 PT - Street Wire
Also Street Wire (C-CF) Canaccord Genuity Group Inc
by Mike Caswell
The Investment Industry Regulatory Organization of Canada has launched an enforcement action against former Canaccord Genuity Corp. adviser Nicola More, alleging that she disclosed confidential client information to people not authorized to receive it. The recipients included Ms. More's brother and an individual IIROC only identifies as "BP," who is described as having a serious regulatory history. IIROC's description of that regulatory history matches that of Brent Pierce.
The allegations are contained in a notice of hearing that IIROC announced on Friday, Dec. 6. IIROC claims that Ms. More, over a 19-month period, disclosed client information primarily relating to the number of shares her clients held in an OTC Bulletin Board company called Mainland Resources Inc. She also accepted trading instructions on a number of accounts from her brother Jonathan (only identified as "JM"), who became a Mainland director in December, 2009, IIROC claims.
The notice of hearing identifies Mainland as an oil and gas company incorporated in Nevada. Between March, 2008, and September, 2008, the stock went to a $6.70 high, up from $2. It then steadily dropped, reaching 17 cents in June, 2011. (It was last at three cents. The U.S. Securities and Exchange Commission revoked its registration on Oct. 1, 2013, for failing to file financial reports.)
IIROC claims that in 2010 Ms. More accepted and executed trade instructions for Mainland Resources from her brother for a number of client accounts. Her brother did not have trading authority over the accounts, and there was no written authorization from the clients to accept trading instructions from her brother, IIROC says. She also disclosed confidential client information relating to Mainland positions to her brother and to BP via e-mail and text message, according to the notice of hearing.
When Ms. More disclosed the client information, she was aware that BP had a serious regulatory history, IIROC says. That history, as described in the notice of hearing, included a 15-year ban BP received in June, 1993, from the B.C. Securities Commission. (The ban expired in June, 2008, months before the conduct that IIROC complains of.)
BP's regulatory history also extended to the U.S., the notice of hearing states. In July, 2008, the SEC claimed that BP had conducted a massive spam and e-mail campaign to promote a stock, "which more than doubled the stock price and allowed BP to net millions of dollars when he sold his shares to the public." In June, 2009, the SEC ordered that BP cease and desist from further violations and ordered him to disgorge $2-million in ill-gotten gains. The SEC's decision described BP's conduct as "egregious and recurrent." (IIROC's description matches sanctions that Mr. Pierce received for the Lexington Resources Inc. promotion.)
The e-mails and text messages from Ms. More that IIROC complains of began in September, 2008. That month, she and her brother exchanged a number of text messages that IIROC claims make reference to consulting or advising BP about the sale of Mainland shares. These included one she allegedly wrote that read: "I can sell some MNLU if he wants ... just wanna run it by BP first ... ." That same month, she accepted trade instructions from her brother to sell shares from two separate accounts, IIROC claims.
Ms. More's violations, as described in the notice of hearing, continued into October, 2008. She allegedly e-mailed her brother information about debits in client accounts and advised him, "All mainland positions they are threatening selling out tomorrow." IIROC says they exchanged further text messages in which Ms. More's brother advised "NO ONE sells."
The messages continued in December, 2008, with Ms. More apparently having some concern about BP. She said in one message, "is there anything I can do or say to BP?" Her brother replied, "no there isn't but thank you ... he is more than happy with mnlu right now." Later in the exchange her brother wrote, "he questions your loyalty but in the end you have had the MAJORITY of the stock you placed held for an ADDITIONAL 4 months."
The notice of hearing also accuses Ms. More of e-mailing BP confidential information about Mainland Resources positions. In May, 2010, BP had another Canaccord employee send him statements showing Mainland holdings, IIROC says. He appeared to be concerned about clients selling Mainland Resources, according to the notice of hearing. Ms. More, on May 27, 2010, e-mailed BP a position report, which showed all of her client accounts that held Mainland, IIROC claims.
The notice of hearing seeks appropriate sanctions for contraventions of IIROC rules that govern trading instructions and the disclosure of client information. Possible sanctions range from a reprimand to a $1-million fine and a permanent ban. A hearing in the matter is scheduled for April 22, 2014.
Ms. More is no longer employed at Canaccord or any other brokerage. She began as an investment adviser at Pacific International Securities Inc. in May, 1994, and was most recently at Jordan Capital Markets Inc. until November, 2013.
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Read more at https://www.stockhouse.com/companies/bullboard/v.aln/aldrin-resource-corp?postid=21986514#8dcD4jkjib2qEJhf.99