Decision notice relates to off-book investments unbeknown to client, firm
A former registered representative of Assante Capital Management in Vancouver engaged in misconduct that was “serious and repeated over an extended period of time.”
The decision of a hearing panel of the Canadian Investment Regulatory Organization has been published following the regulator fining John David Lunam $30,000 and banning him for 18 months from approval in any capacity with CIRO.
Lunam admitted to facilitating off-book investments without his firm's knowledge or consent and using a personal email address for these activities. These actions violated Rule 1400 of the Investment Dealer Rules. The misconduct took place over 44 months during 2018 to 2021.
The investments were private placements for five companies, involving 19 clients and a total of $316,500. He also failed to disclose adverse information about an associate involved in the investments, who had been charged by the SEC with unrelated securities law violations.
The dealer rep had enjoyed a 33 year career in the securities industry and had been with Assante since 2000 until his termination in June 2022 when his misconduct came to light. He had no prior disciplinary history.
Lunam did not receive financial compensation for facilitating these investments and his cooperation with the investigation and admission of wrongdoing expedited the resolution of the case.
Given his financial position and his age (78), the CIRO panel determined that the fine and temporary ban effectively ended Lunam’s career and would be an appropriate deterrent.
