A hearing panel of the Investment Industry Regulatory Organization of Canada (IIROC) has accepted a settlement agreement in which Jeffrey Brian Ber has admitted he received an off-book payment from an issuer without the approval of his dealer. 

As a result, Ber agreed to a $70,000 fine, a three-year suspension from registration in any capacity with IIROC and costs of $5,000.

IIROC said that between October 2016 and April 2017, Ber was a registered representative in Calgary with TD Waterhouse Canada Inc., but is not currently employed as an advisor.

In March 2017, Ber received a payment of $104,568.75 from a junior oil and gas issuer, but did not ask for approval or disclose the payment to TD Waterhouse. 

In early 2014, the gas issuer was in the midst of seeking financing and Ber helped the gas company with marketing and presentation materials. 

In March 2017, TD Securities participated in an underwriting syndicate with respect to an equity offering of the issuer’s shares, which closed on March 14, 2017.

Ber receives cheque for consulting services 

In conjunction with the financing, Ber sought and received an allotment of 12,275,000 shares ($6,751,250) for 55 client accounts. Shortly afterwards, the issuer gave Ber a cheque payable to him personally in the amount of $104,568.75 for consulting services provided and he deposited the money into his primary bank account.

TD Waterhouse then conducted an internal investigation into Ber’s conduct. Shortly afterwards, he admitted that he received funds from the issuer and the gas company publicly acknowledged that the funds were paid for the consulting work Ber had provided over previous years, but for which he only received payment in March 2017.

TD Waterhouse then unwound the allocation of shares to certain client accounts, resulting in no losses or fees charged to these clients. 

However, IIROC said Ber should have received approval from his firm before he took the off-book payment. 

Ber agreed to the $70,000 fine, and a three-year suspension from registration in any capacity with IIROC.