Reuters: Regulatory News: Canadian investing regulator raps RIM critic Alboini

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Canadian investing regulator raps RIM critic Alboini Jul 31st 2012, 16:18 Tue Jul 31, 2012 12:18pm EDT * IIROC rules Victor Alboini broke trading rules * Ruling names two other executives at Northern Securities By Jennifer Kwan TORONTO, July 31 (Reuters) - A shareholder in Research In Motion who has been a vocal and persistent critic of the BlackBerry maker has been found by Canada's investment industry watchdog to have engaged in improper and risky trading. In a decision released late on Monday, the Investment Industry Regulatory Organization of Canada (IIROC) said that between August and November 2008, investment bank Northern Securities Inc Chief Executive Victor Alboini "engaged in a trading practice which improperly obtained access to credit" for his client, Jaguar Financial Corp, of which Alboini is also president and CEO, and in doing so risked the capital of Northern. IIROC found that two other Northern executives also broke the rules. Alboini said he disagrees with the ruling. "We will be appealing the decision of the panel. We have fundamental issues with the lack of fairness associated with the proceedings by IIROC," he told Reuters. Alboini, who is a former securities lawyer, is a widely known critic of RIM, of which Jaguar is a shareholder. Last year, he called for the company's co-chief executives to be replaced and demanded the appointment of an independent chairman, while also urging the company's board to consider selling the company or breaking it into three units. IIROC also found that Frederick Vance, as chief compliance officer at Northern, failed to adequately supervise Alboini's trading activity involving Jaguar and other Northern clients. As well, between 2006 to 2010, Alboini and Vance repeatedly failed to correct problems discovered in three business conduct compliance reviews and one trading conduct review. Douglas Chornoboy, chief financial officer of Northern from February 2008 until 2009, filed or allowed the filing of inaccurate monthly financial reports that failed to account for "leasehold improvement costs, thereby misstating Northern's risk adjusted capital," IIROC said. A penalty hearing is scheduled for Oct. 11. IIROC launched the investigation in April 2009. The hearing took place from May 7 to June 1, 2012. Link this Share this Digg this Email Reprints

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