IIROC pursues trader who dodged suspension

by Mike Caswell

The Investment Industry Regulatory Organization of Canada has begun a case against Robert Edward Sole, a trader who managed to keep working through an IIROC suspension. IIROC says that Mr. Sole agreed to a one-month suspension in 2016 for a spoofing scheme. After his suspension, he obtained work at another firm, hidinghis regulatory history and continuing to trade, IIROC claims.

The allegations against Mr. Sole are contained in a statement of allegations that IIROC released on Tuesday, April 3. The regulator identifies him as an employee of the securities industry since 1996. Starting in May, 2008, he worked in Toronto as a proprietary trader at W.D. Latimer Co. Ltd.

The problems, as described in the statement, go back to a settlement agreement that Mr. Sole entered into with IIROC in July, 2016. In that settlement, he admitted to a spoofing scheme that he carried out on the TSX Venture Exchange while at W.D. Latimer. (Mr. Sole entered orders for several TSX-V companies that he did not intend to execute. The orders, which he entered before the open, were intended to change the calculated opening price to Mr. Sole's advantage.) For that infraction and others, Mr. Sole agreed to pay $11,000 and to serve a one-month suspension.

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