Toronto Investment adviser Krishna Sammy has been hit with punitive action, following a penalty hearing held on April 27, 2016.
A Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC) imposed the following penalty on Krishna Sammy:
(a) A fine of $250,000; and
(b) A five-year bar from approval with IIROC, with the condition that he cannot be considered for re-approval until he has paid the fine and costs imposed, or has made arrangements satisfactory to IIROC to do so.
Mr. Sammy is also required to pay costs in the amount of $75,000.
The penalty decision can be found at: http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=4794B0F241454CF19D6D772DDDFBE4A5&Language=en
In an earlier decision dated January 18, 2016, the Hearing Panel found that Mr. Sammy placed himself in a conflict of interest with his clients when he recommended that his clients purchase securities in their accounts when, at the same time and without the knowledge of his clients, he was selling his own personal holdings of these securities. The Hearing Panel also found that Mr. Sammy made investment recommendations to several clients that were unsuitable for these clients based on their risk tolerance. The decision can be found at:http://www.iiroc.ca/Documents/2016/1702c7f7-835f-4d48-b543-13c690801628_en.pdf.
In addition, on February 17, 2016, Mr. Sammy filed an Application for a Hearing and Review of the IIROC liability decision to the Ontario Securities Commission.
Further information about the review can be found at: www.osc.goc.on.ca.
Documents related to ongoing IIROC enforcement proceedings – including Reasons and Decisions of Hearing Panels – are posted on the IIROC website as they become available.
IIROC formally initiated the investigation into Mr. Sammy’s conduct in April 2012. The conduct occurred while he was a Registered Representative, a Portfolio Manager and a Supervisor with the Brampton, Ontario branch of DWM Securities Inc. (previously Dundee Securities Corporation), an IIROC-regulated firm. Mr. Sammy is no longer a registrant with an IIROC-regulated firm. – CNW