The Investment Industry Regulatory Organization of Canada (IIROC) announced Feb. 21 that an IIROC hearing panel has accepted a settlement agreement with Carlos Manuel Vargas.
Vargas admitted to improper trading activity between August 2012 and December 2013, says the regulator. “During this period, he traded new issues for his employer's own pro-trading inventory accounts or his own personal trading accounts in circumstances where he knew, or ought to have known, he had no or limited retail demand for the new issues,” said IIROC in a statement.
Vargas has agreed to the following penalties: payment of a fine of $620,000 and costs of $50,000. He also received a one-year suspension and six months of close supervision upon re-registration with an IIROC dealer.
Vargas was employed at the Toronto branch of Global Maxfin Capital Inc. (GMCI) from June 2010 to October 2012 and then with Chippingham Financial Group from October 2012 to June 2014. He is currently not employed in the securities industry or registered with an IIROC firm. He acted as both “Head of Syndication” and “Head of Trading” at both GMCI and Chippingham.
To learn more, you may consult the settlement agreement on IIROC’s website.