* Northern Securities CEO may not trade or deal for 2 years
* Fined C$625,000 after sanctioned for trading activity
* Northern applying for review of decision
By Cameron French
TORONTO, Nov 13 Activist investor Vic Alboini,
an outspoken critic of Research in Motion, has been
suspended and fined by Canada's investment industry watchdog
after he was found to have engaged in improper and risky
In a decision released late on Monday, the Investment
Industry Regulatory Organization of Canada (IIROC) imposed on
Alboini a two-year suspension "in all capacities" (trading or
dealing) and fines totaling C$625,000 ($624,200) for actions
taken in his capacity as chief executive of Canadian dealer
Northern Securities, a unit of Northern Financial Corp.
Alboini is also permanently banned from being an "ultimate
designated person." A UDP oversees an investment dealer's
compliance system and is often the firm's CEO.
IIROC found that in late 2008, Alboini "engaged in a trading
practice which improperly obtained access to credit" for his
client at the time, Jaguar Financial, "and in doing so
risked the capital of both Northern Securities and its carrying
broker." Alboini is also CEO of Jaguar.
He also failed to ensure that Northern Securities corrected
deficiencies in its business conduct and trading practices,
IIROC handed out smaller penalties to Frederick Vance, who
as chief compliance officer at Northern was found to have failed
to adequately supervise Alboini's trading activity, and to
Douglas Chornoboy, who as chief financial officer filed or
allowed the filing of inaccurate monthly financial reports.
Vance was given two concurrent three-month suspensions from
acting in any supervisory capacity and fines of C$50,000.
Chornoboy was fined C$25,000.
Northern Securities itself was fined C$300,000.
In a statement the firm said it has applied to the Ontario
Securities Commission for a hearing and review of IIROC's
decision. It has also applied to the OSC for a stay of the IIROC
sanctions pending the decision on the appeal.
Asked about his future at Northern, Alboini told Reuters if
the stay is granted, he will remain in his position with the
If the stay is not granted, "I'm going to have to leave that
up to the board," he said.
A former securities lawyer, Alboini has become notorious in
Canadian investment circles for his activist stances at
companies in which Jaguar has been a shareholder.
In 2009, Alboini played a crucial role in scuttling HudBay
Mineral's friendly bid for Lundin Mining.
His latest target is RIM. Last year he called for the
company's co-chief executives to be replaced and demanded the
appointment of an independent chairman, while also urging the
company's board to consider selling the company or breaking it
into three units.
Alboini was not immediately available for comment.
IIROC is Canada's self-regulatory organization which
oversees all investment dealers. The Ontario Securities
Commission is Canada's largest securities regulator.