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by Mike Caswell

The Canadian Investment Regulatory Organization has fined Leede Jones Gable Inc. for failing to supervise one of its employees, Larry Martin, and his dealings with since-jailed Vancouverite Oliver Lindsay. CIRO says that Mr. Martin failed to detect suspicious activity in accounts that Mr. Lindsay held. Among other things, the accounts sold $5.4-million (U.S.) worth of shares in questionable circumstances, CIRO says.

The fine for Leede is contained in a settlement agreement that CIRO released on Friday, Dec. 22. The firm has agreed to pay $150,000 and to pay $15,000 in CIRO's costs. Once Leede pays the money (the firm has 30 days), CIRO will not initiate any further action on the matter.

The case arises from accounts that Mr. Martin opened starting in April, 2016, for Mr. Lindsay. Unbeknownst to Mr. Martin or Leede, the accounts were for a Cayman Islands brokerage that Mr. Lindsay owned called CMGT Inc. There were many red flags arising in connection with Mr. Lindsay's accounts, according to CIRO. Over a period of about two years, Mr. Lindsay deposited shares in over-the-counter companies and, in a relatively short period of time, sold all or nearly all of those shares. During that same period, Mr. Lindsay withdrew $5.4-million (U.S.) from the accounts, while making minimal cash deposits.

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