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News Release

For Immediate Release

99/25


CONTACT:

July 22,1999

PAM WHITWORTH
communications@vse.ca
(604) 488-3126
Vancouver Stock Exchange: Voelpel, Approved Person Disciplined

Notice to Members #62/99

By way of an Offer of Settlement, Stephen Alexander Voelpel ("Voelpel") an Approved Person employed by Global Securities Corporation ("Global"), has agreed to the imposition of the following penalties by the Exchange for violation of Exchange By-Law 5.01(2) and Exchange Rules F.1.02 (2) and F.2.22 (2):

  1. payment of a fine in the amount of $10,000;
  2. disgorgement of commissions in the amount of $375;
  3. withdrawal of Exchange approval for a period of 30 days, and
  4. an assessment of investigative costs in the amount of $2,000.

By-Law 5.01(2) states in part, that an "Infraction" means any conduct, proceeding or method of business, which is unbecoming or inconsistent with just and equitable principles of trade or detrimental to the interests of the Exchange or the public.

Rule F.1.02(2) states in part, that every member shall, prior to accepting orders from a third party for the account, have on file a trading authority signed by the client empowering the third party to enter orders on the account.

Rule F.2.22.2 states in part, that an investment adviser shall not, subject to Rule F.3.04, handle a discretionary order or exercise any discretion in the handling of an account of a client of a member.

Between July 2, 1996 and July 11, 1996, Voelpel accepted orders from a third party (the "Third Party") to execute 7 trades in 5 Exchange listed companies valued at approximately $50,917 (the "Third Party Trades") on a client account (the "Client"). The Third Party Trades were executed without the Client's knowledge or authorization and without having on file, the required written trading authorization permitting the Third Party to trade the Client's account.

Voelpel thereby violated Exchange By-Law 5.01(2) and Exchange Rule F.1.02(2).

Further, between July 11, 1996 and September 30, 1996, Voelpel exercised discretion in the Client's account executing 16 trades in 5 Exchange listed companies valued at approximately $37,780 (the "Discretionary Trades"). Voelpel had not received the Client's authorization to exercise discretion over the account and Global had not accepted the Client account as discretionary.

Voelpel thereby violated Exchange Rule F.2.22(2).

No fault was attributed to the Member Firm.

 

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