Former Approved
Person Disciplined
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Notice to Members #87/98
By way of an Offer of Settlement, Bruce Wai Ken Jung
("Jung"), at the time of the infraction an Approved Person employed by Canadian
Western Capital Limited ("Canadian") has agreed to the imposition of the
following penalties by the Exchange for violation of Exchange Rule C.1.08:
- payment of a fine in the amount of $1,000, and
- an assessment of investigative costs in the amount of $750.
Rule C.1.08 states in part that no Member or approved person shall
trade or participate in any trade in any listed security unless the trade is made on VCT
during a trading session.
In or about November 1996, Jung purchased
111,112 shares of Exchange listed Concept Industries Ltd. ("Concept") at a price
of $0.25 per share from his client in a private "Off-VCT" transaction. During
November 1996, the average price of Concept was $0.36 per share and the average daily
trading volume during this period was approximately 9,379 shares. On January 21, 1997,
Jung delivered the shares to his account at Canadian.
In or about August 1997, Jung purchased 33,330 shares of Concept at a
price of $0.25 per share from a second client in a private "Off-VCT"
transaction. During August 1997, the average price of Concept was $0.31 per share and the
average daily trading volume during this period was approximately 34,700 shares. On
September 5, 1997, Jung delivered the shares to his account at Canadian.
Jung participated in trades in the shares of Concept, that were not
made on VCT during a trading session.
Jung thereby violated Exchange Rule C.1.08.
The Off-VCT trades conducted by Jung were with clients that were close
personal friends. There has been no client complaint in respect of this matter.
No fault was attributed to the Member Firm, who reported Jung’s
conduct to the Exchange.
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