Order: In the Matter of Northern Securities Inc. et al.

IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED

- AND -

IN THE MATTER OF NORTHERN SECURITIES INC., VICTOR PHILIP ALBOINI,
DOUGLAS MICHAEL CHORNOBOY AND FREDERICK EARL VANCE

- AND -

IN THE MATTER OF DECISIONS OF A HEARING PANEL OF THE
INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA DATED
JULY 23, 2012 AND NOVEMBER 10, 2012

ORDER
(Section 21.7 and Subsection 8(3) of the Securities Act)

 

WHEREAS on August 20, 2012, Northern Securities Inc. (“NSI”), Victor Philip Alboini (“Alboini”), Douglas Michael Chornoboy (“Chornoboy”) and Frederick Earl Vance (“Vance”) (collectively the “Applicants”) filed with the Ontario Securities Commission (the “Commission”) a notice of application (the “Application”) pursuant to section 21.7 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”), for a hearing and review of the decisions of a hearing panel (the “Hearing Panel”) of the Investment Industry Regulatory Organization of Canada (“IIROC”) dated July 23, 2012 and November 10, 2012 (the “Decision”);

AND WHEREAS the Hearing and Review was heard over three days on February 14, 15, and 20, 2013, and the Commission released its decision and reasons on December 19, 2013, in which, among other matters, it set aside the sanctions and costs imposed on the Applicants by the IIROC Hearing Panel and ordered that the Commission would hold a hearing de novo solely on the question of the appropriate sanctions and costs to be imposed on the Applicants based on the findings of the IIROC Hearing Panel, other than its finding with respect to one Count; AND WHEREAS the Sanctions and Costs Hearing was held on June 9, 10 and 11, 2014 and upon considering the evidence and the submissions, the Commission issued its reasons and decision on sanctions and costs on the date hereof;

AND WHEREAS the Commission has concluded that it is in the public interest to make the following order;

IT IS HEREBY ORDERED THAT:

1.   The following sanctions and costs are imposed on Alboini:

1. Alboini shall pay a fine of $250,000 to IIROC, such fine to be paid within 30 days of the date of this order;
2. Alboini shall disgorge to IIROC commissions of $244,985, such amount to be paid within 30 days of the date of this order;
3. Alboini shall be suspended for one year from approval by, or registration with, IIROC in all categories anywhere in the industry, commencing 14 days after the date of this order;
4. Alboini shall be suspended for two years from approval by, or registration with, IIROC as an Ultimate Designated Person anywhere in the industry, commencing 14 days after the date of this order;
5. Alboini is reprimanded; and
6. Alboini shall pay to IIROC costs in the amount of $62,500, such costs to be paid within 30 days of the date of this order;

2.   The following sanctions and costs are imposed on NSI:

1. NSI shall pay a fine of $50,000 to IIROC, such fine to be paid within 30 days of the date of this order;
2. NSI is reprimanded; and
3. NSI shall pay to IIROC costs in the amount of $10,000;
   

3.   The following sanctions are imposed on Vance:

1. Vance shall be suspended for three months from approval by, or registration with,  IIROC in any supervisory capacity, including acting as Chief Compliance Officer anywhere in the industry, commencing 14 days after the date of this order;
2. Vance is reprimanded; and

4.   Chornoboy is reprimanded.

 

DATED at Toronto this 11th day of September, 2014.

" James E. A. Turner " James E. A. Turner

" Judith N. Robertson " Judith N. Robertson