TORONTO - Jaguar Financial Corp. (TSX:JFC) says Vic Alboini, its CEO who was recently suspended and slapped with a fine by an investment regulator, is appealing to Ontario securities regulators to reverse that decision.
The Investment Industry Regulatory Organization of Canada imposed a two-year suspension and fined Alboini more than $625,000 Monday after it found he broke several investment industry rules.
But Jaguar said in an earnings release Tuesday that Alboini, who was fined in relation to his role as CEO of Northern Securities Inc., has applied to the Ontario Securities Commission for a hearing and review of the IIROC decision.
He will also ask for a stay of IIROC's decision while the OSC hears the case.
IIROC said Alboini, in a role as the firm's "ultimate designated person'' engaged in a trading practice enabling Jaguar Financial to obtain unapproved access to credit in 2008.
It said Alboini along with Fred Vance and Douglas Chornoboy in their roles at Northern Securities contravened several of its rules following hearings into the matter this summer.
IIROC added that he and Vance, as chief compliance officer, failed to create and maintain a culture of regulatory compliance.
It also found Alboini and Vance did not ensure that the dealer "corrected deficiencies found in three business conduct compliance reviews and one trading conduct review,'' and Alboini and Chornoboy, as chief financial officer allowed or filed inaccurate financial reports that failed to account for leasehold improvement costs and therefore misstating Northern Securities' adjusted capital.
Alboini has been suspended "in all capacities'' for two years, and is permanently banned from being an "ultimate designated person'' and faces several fines and a disgorgement of commission earned from trades under the Jaguar Financial charge.
Jaguar also said Tuesday its third-quarter results rebounded into positive territory as equity market conditions improved, reporting a net income of $94,048, compared to a net loss of $5.1 million in the third quarter of 2011.
The company generated a net gain on investments of $232,042, compared to a net loss of $4.6 million a year earlier.
Jaguar also announced the appointment of Craig Rogers as interim chief financial officer.Rogers is also vice-president of investment banking at Northern Securities Inc.