On December 19, 2016, a hearing panel of the Investment Industry Regulatory Organization of Canada accepted a settlement agreement, with sanctions, entered into between IIROC staff and Louis Constantine Cavalaris.
Cavalaris admitted that he failed to properly supervise the conduct of Krishna Sammy. Specifically, Cavalaris admitted to the following violation:
Between December 2009 and February 2011, Cavalaris failed to adequately supervise the activities of Krishna Sammy, a portfolio manager at DWM Securities Inc., to ensure compliance with IIROC Dealer Member Rules, contrary to IIROC Dealer Member Rules 38.7 and 2500.
Pursuant to the settlement agreement, Cavalaris agreed to the following penalties:
(a) a fine in the amount of $60,000; and
(b) a reprimand.
Cavalaris also agreed to pay costs in the amount of $5,000.
IIROC formally initiated the investigation into Cavalaris’ conduct in June 2013. The violation occurred while he was the chief compliance officer of DWM Securities Inc., an IIROC-regulated firm. Cavalaris is currently registered as the chief compliance officer of Echelon Wealth Partners Inc., an IIROC Dealer Member.