This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The Canadian Investment Regulatory Organization has found PI Financial Corp.'s Randy Hildebrandt liable for gatekeeper violations that arose after a group of related accounts traded heavily in CSE listing JDF Explorations Inc. in 2019. CIRO says that Mr. Hildebrandt failed to question potentially manipulative activity, with one of the accounts making trades that boosted JDF by 525 per cent over a two-week period. Mr. Hildebrandt should have demonstrated an "alert, curious attitude" about the activities of his clients, CIRO has determined.

The findings are contained in a decision that CIRO released on Friday, Jan. 31. There are no penalties for Mr. Hildebrandt, at least not yet. Friday's ruling only determines his liability, with CIRO to convene a hearing to determine any fines or bans that may result from the violations.

The case goes back to 2019, when Mr. Hildebrandt had a group of related accounts that traded a single, junior issuer. (CIRO did not name the clients or the company, only describing the company as a gold explorer, but the circumstances make it clear that the regulator is referring to JDF Explorations.) In September, 2019, the clients deposited a total of 5.87 million shares, which amounted to 13 per cent of the total issued and outstanding stock in the company, CIRO said. In the four months that followed, activity in those accounts "dominated the market" for JDF, accounting for as much as 90 per cent of all trading, according to CIRO.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS