Former Richardson GMP rep fined $75,000

On February 6, 2013, a hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC), accepted a settlement agreement between IIROC staff and Gabriel Ka Leung Lee.

Lee admitted that without his firm’s knowledge he engaged in outside business activities by facilitating off-book investments and loans by eight clients in two separate companies. He also admitted to borrowing funds from a client.

Specifically, Lee admitted to the following violations:

a) Between June 2008 and September 2011, Lee engaged in outside business activities by facilitating off-book investments and/or loans between eight clients and Asia Active Resources, without the knowledge of his firm and without proper exemptions under the Securities Act (Alberta), contrary to Dealer Member Rule 29.1;

b) In 2009, Lee engaged in outside business activities by facilitating off-book investments by three clients in Castle Rock Research Corporation, without the knowledge of his firm, contrary to Dealer Member Rule 29.1; and

c) In or about February 2011, Lee engaged in personal financial dealings with a client without the knowledge or consent of his firm when he borrowed $100,000 from a client, contrary to Dealer Member Rule 29.1.

Pursuant to the settlement agreement, Lee agreed to the following penalties:

a) Lee agrees to pay a fine to IIROC in the amount of $75,000.00; and

b) Lee shall be prohibited from registration in any capacity for a period of six months.

Lee also agreed to pay costs in the amount of $5,000.00.

Read the settlement agreement.

IIROC formally initiated the investigation into Lee’s conduct in September 2011. The conduct occurred when he was a registered representative with the Edmonton branch of Richardson GMP Limited, an IIROC-regulated firm. Lee is no longer a registrant with an IIROC-regulated firm.

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