Canada activist shareholder Alboini suspended, fined

Tue Nov 13, 2012 4:11pm EST
 

By Cameron French

TORONTO (Reuters) - Activist investor Vic Alboini, an outspoken critic of Research in Motion, has been suspended and fined by Canada's investment industry watchdog after he was found to have engaged in improper and risky trading.

In a decision released late on Monday, the Investment Industry Regulatory Organization of Canada (IIROC) imposed on Alboini a two-year suspension "in all capacities" (trading or dealing) and fines totaling C$625,000 ($624,200) for actions taken in his capacity as chief executive of Canadian dealer Northern Securities, a unit of Northern Financial Corp.

Alboini is also permanently banned from being an "ultimate designated person." A UDP oversees an investment dealer's compliance system and is often the firm's CEO.

IIROC found that in late 2008, Alboini "engaged in a trading practice which improperly obtained access to credit" for his client at the time, Jaguar Financial, "and in doing so risked the capital of both Northern Securities and its carrying broker." Alboini is also CEO of Jaguar.

He also failed to ensure that Northern Securities corrected deficiencies in its business conduct and trading practices, IIROC said.

IIROC handed out smaller penalties to Frederick Vance, who as chief compliance officer at Northern was found to have failed to adequately supervise Alboini's trading activity, and to Douglas Chornoboy, who as chief financial officer filed or allowed the filing of inaccurate monthly financial reports.

Vance was given two concurrent three-month suspensions from acting in any supervisory capacity and fines of C$50,000. Chornoboy was fined C$25,000.

Northern Securities itself was fined C$300,000.   Continued...