Decisions
Edward Bernard Johnson [Findings]
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BCSECCOM #:
2007 BCSECCOM 257
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Document Type:
Findings
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Published Date:
2007-05-15
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Effective Date:
2007-05-11
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Details:
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2007 BCSECCOM 257
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Hearing
| Panel | Brent W. Aitken | Vice Chair |
| David J. Smith | Commissioner | |
| Suzanne K. Wiltshire | Commissioner |
| Dates of Hearing | March 12, 13, April 3 and 11, 2007 |
| Date of Findings | May 11, 2007 |
| Appearing | |
| C. Paige Leggat Lisa Ridgedale | For the Executive Director |
| John S. Forstrom | For Edward Bernard Johnson |
Findings
I Background
Introduction
¶ 1 This is a hearing under sections 161(1) and 162 of the Securities Act, RSBC 1996, c. 418.
¶ 2 Edward Bernard Johnson was a registered representative for a brokerage account in the name of a Robert Taylor. Johnson knowingly accepted trading instructions on that account from a third party. The third party was Stanley Steven Ross, who at the time was prohibited from trading because of a 1999 order of the executive director.
¶ 3 In an amended notice of hearing dated March 9, 2007, the executive director alleges that Johnson contravened By-law No. 29.1 and Regulation 1300.1(b) of the Investment Dealers Association of Canada when he “allowed Ross to trade” in the Taylor account between 2000 and 2004.
¶ 4 Commission staff interviewed Johnson on November 2, 2004 and again on January 20, 2005.
¶ 5 When staff investigators asked Johnson about the trading instructions in his interviews, he said that he did not know that Taylor had allowed Ross to trade in the account, and that to his knowledge, Ross did not do so. In the notice of hearing, the executive director also alleges that those statements were false or misleading, contrary to section 168.1 of the Act.
¶ 6 The original notice of hearing contained allegations against Ross relating to his trading in the Taylor account. The executive director and Ross settled those allegations (see Stanley Steven Ross 2007 BCSECCOM 113).