June 13, 2004 by Canadian Underwriter
Following a decision by the Alberta Securities Commission (ASC), the founders of Anthony Clark International have been ordered to pay fines totaling $80,000 and been banned from the markets for six years each.
Brothers Luciano John and Secondo Pietro Podorieszach face the penalties after a panel of the ASC found them guilty of artificially inflating the value of the brokerage’s stock when they purchased shares in 2000. Each was ordered to pay an administrative penalty of $20,000 and $20,000 toward the cost of investigation. While they must cease trading in securities for six years, they can trade in RRSPs for themselves or their spouses, in debt securities or in securities of reporting issuers whose market capitalization exceeds $500 million at the time of acquisition. After two years, they will be allowed to trade again on behalf of clients in their capacity as a registrant, under close supervision, the ASC notes.
The panel noted, “While they were not registered at the time to trade in or advise on securities like ACL [Anthony Clark] shares, they were nonetheless knowledgeable and experienced in market trading, and as registrants they held a privileged place in our capital market.”
The panel dismissed allegations against Roche Securities and its founder, Francis Roche, related to the same stock sale.