A former portfolio manager has been found guilty of facilitating off-book transactions, accepting undeclared remuneration from issuers, failing to disclose a conflict of interest, and deleting email records to conceal his clandestine dealings.
In a statement, IIROC has declared that Jayant Noronha, a former portfolio manager with Dundee Securities and Raymond James
Wealth in Toronto, acted contrary to IIROC Rules 29.1, 18.15 and 42.
Based on evidence, Noronha negotiated an agreement with the Mint Corporation in 2011 under which his spouse, a full-time teacher, would receive warrants, debentures, and monthly payments from Mint in exchange for “consulting services.”
Noronha admitted that Dundee would not permit him to do consulting work directly for Mint. Any compensation that Noronha received from causing clients to participate in private placements with Mint should have been deposited with Dundee, which was entitled to 50% of the net proceeds.
Using his discretionary authority, Noronha directed client accounts to participate in multiple private placements with Mint, up to and including the time of his employment with Raymond James
; each time, Mint issued compensation to Noronha’s spouse. He also recommended that clients invest in shares of Mint off the books of Dundee and, subsequently, Raymond James, for which he and his wife received remuneration.
During Noronha’s time at Raymond James in 2012, he entered into a similar relationship with another company, Voodoo Vox, under which he was compensated through his spouse for directing off-book investments in the company. Raymond James had no knowledge of the agreements Noronha made with Voodoo Vox or the compensation received by Noronha. Evidence also suggests that in 2013, Noronha tampered with and deleted email records so they would not be visible to Raymond James.
A penalty hearing on Noronha’s case has been scheduled for March 6.
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