Rep executed LFNT share sale after employer denied off-marketplace request, CIRO documents show
The Canadian Investment Regulatory Organization (CIRO) has accepted a settlement agreement with sanctions between Enforcement Staff and Jonathan Thomas Jones on May 30, under the Investment Dealer and Partially Consolidated Rules.
According to the settlement agreement, Jones admitted to contravening section 6.4 of the Universal Market Integrity Rules by participating in a trade in May 2024 outside of a marketplace.
CIRO stated that Jones traded 609,525 shares and 380,813 warrants of LFNT Resources Corp. in an off-marketplace transaction without his employer’s knowledge, making a profit of approximately $2,453.
In September 2023, Jones had asked Haywood Securities Inc., where he worked at the time, if he could sell his LFNT shares off-marketplace.
Haywood advised that the shares were listed and unrestricted, therefore he could not.
Despite this, Jones executed the trade the following May with a company previously his client, which was owned by individuals affiliated with LFNT.
Jones reported the transaction to Haywood on July 4, 2024.
Following this, Haywood instructed him to cancel the trade, after which the LFNT shares and warrants were returned to his account.
On July 19, 2024, he sold the shares on the marketplace to the same buyer, making a profit of approximately $2,477.
CIRO noted that Haywood internally disciplined Jones, who acknowledged misconduct and paid $2,500 in investigation costs.
CIRO also stated that Jones accepted an Early Resolution Offer, reducing his fine by 30 percent.
Jones agreed to pay a fine of $21,000 and costs of $2,000 as part of the settlement.
At the time of the contravention, Jones was registered as a Registered Representative (Securities) with Haywood in Vancouver.
As of December 2024, Jones has been registered in the same role with Leede Financial Inc. in the same area.
