Representative sanctioned for enabling Québec clients to acquire restricted securities through trades
The Canadian Investment Regulatory Organization (CIRO) imposed penalties on John Viron following a settlement hearing held on November 5.
The hearing, conducted under the Investment Dealer and Partially Consolidated Rules, addressed violations involving the facilitation of client participation in restricted transactions.
The panel confirmed a $20,000 fine and disgorgement of $3,368.91 in commissions.
Viron is also required to pay $5,000 in costs.
At all material times, Viron was employed as a registered representative with Desjardins Securities Inc. in Laval, Québec.
Between 2019 and 2021, Viron executed off-market transactions that allowed Québec residents to acquire units of new issues and a public offering.
These transactions circumvented eligibility restrictions outlined in prospectuses, including a 2021 bought deal equity financing by High Tide Inc. and a 2020 initial public offering by New Found Gold Corp.
The investigation noted that Viron facilitated cross trades by arranging for clients in British Columbia to purchase securities eligible in that province and then transfer them to Québec-based clients through off-market cross transactions.
These actions included changes in beneficial ownership, which contravened CIRO’s rules.
Viron acknowledged the violations and cooperated fully with CIRO's investigation. He remains employed within the industry in a registered capacity at Desjardins Securities Inc.
