He paid $21,732 in obtained funds plus $25,000 to close the matter
BC man bought and sold securities in his clients' online brokerage accounts, at times using his own discretion, without holding any registration to do so.
Jean Andre Lamarche will now pay $46,732 and stay out of British Columbia's investment market for 11 years.
Lamarche, also known as John Lamarche, reached a settlement with the BC Securities Commission (BCSC) in which he admitted he was in the business of trading and advising in securities while unregistered, according to the regulator.
That conduct breached sections 34(a) and 34(b) of the province's Securities Act.
Between January 5, 2016 and March 5, 2020, Lamarche provided financial planning and related services to certain clients, the settlement agreement said.
He purchased and sold securities in those clients' online brokerage accounts, made some of the trades using his own discretion, and gave investment recommendations to some clients.
He had held registration before.
Lamarche was registered as an investment advisor from 1997 to 1999 and as a dealing representative between 2012 and 2013, according to the settlement, but held no registration during the period covered by the case.
Of the total payment, $21,732 represents funds Lamarche obtained through the misconduct.
People may be able to claim against that amount once the commission publishes notice of a claims process.
He agreed to pay a further $25,000 to settle the matter.
The 11-year ban runs wide.
Under the order, Lamarche cannot act as a registrant or promoter, advise or serve in a management or consultative capacity in the securities or derivatives markets, or take part in promotional activities.
The order also bars him from trading securities or derivatives, except in accounts in his own name through a registered representative who has first received a copy of the order.
The deal closed a case that had run since December 18, 2022, when the executive director issued a notice of hearing against Lamarche.
As part of the settlement, he withdrew his applications in the proceeding, including constitutional challenges, and discontinued a related civil action against the BCSC.
The commission called that resolution a significant mitigating factor, saying it ended substantial litigation and avoided the cost, delay and uncertainty of a contested hearing.
The dispute had turned partly on the regulator's investigative methods.
Lamarche's constitutional application questioned whether the commission's technique of compelling his emails from his internet service provider was authorized under the Securities Act and, if so, whether that power was constitutional, as per an April ruling from a commission panel.
The regulator pointed to other mitigating factors.
Lamarche has no history of securities misconduct in British Columbia, according to the settlement, and he stopped the conduct after learning the BCSC was investigating him.
