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by Mike Caswell

The Canadian Investment Regulatory Organization has fined and banned former Assante Capital Management Ltd. employee John David Lunam, citing him for placing clients into unlisted companies. The companies were run by former Vancouverite Robert Hillis Miller, who was charged in 2019 by the U.S. Securities and Exchange Commission for a scheme on the OTC Markets. According to CIRO, Mr. Lunam carried on the placements without telling clients or his employer about the charges.

The penalties for Mr. Lunam are contained in a settlement agreement that CIRO released on Monday, Dec. 2. Mr. Lunam has agreed to pay a $30,000 fine, plus $2,500 in CIRO's costs, and to serve an 18-month ban. In settling the matter, Mr. Lunam has admitted to the violations.

The case, as set out in the settlement, arises from off-book investments that Mr. Lunam facilitated between 2018 and 2021. CIRO says that he arranged for clients to buy shares in four unlisted companies and in a Canadian Securities Exchange listing, with Mr. Miller being involved in each of the companies. The activity occurred without Assante's knowledge or consent, and involved companies that the firm had not approved, CIRO says.

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