IN THE MATTER OF Carolann Steinhoff – Penalty
April 28, 2010 (Vancouver, BC) – Notice is hereby given that a hearing will be held
before a Hearing Panel of the Investment Industry Regulatory Organization of Canada (IIROC),
on Thursday, May 13, 2010, at Reportex Agencies Ltd., located at 925 West Georgia Street,
Suite 2010, Vancouver, British Columbia, at 10:00 a.m. or as soon thereafter as possible, to
determine the penalty to be imposed in the matter of Carolann Steinhoff (the Respondent).
The proposed hearing concerns matters for which the Respondent will be disciplined as an
Approved Person of IIROC, pursuant to Part 10 of IIROC Dealer Member Rule 20.
The penalty imposed will pertain to findings that the Respondent:
1. From approximately January 2004 until approximately March 17, 2007, engaged in
business conduct or practice that was unbecoming or detrimental to the public interest
contrary to Dealer Member Rule 29.1, by encouraging, instructing, or condoning the use
of a cut and paste procedure whereby her assistants created fake documents and faxed
them to her firm’s head office as properly executed documents;
2. On March 13, 2007, and March 14, 2007, engaged in business conduct or practice that
was unbecoming or detrimental to the public interest contrary to Dealer Member Rule
29.1 in that she directly instructed two different assistants to create a false client
Guarantee and fax it to her firm’s head office as a properly executed document by:
(a) changing the date on an approximately 3-year-old Guarantee and inserting a new
date without having the client sign it; and
(b) cutting out the client signature from another docum
ent already on file and pasting
it on to a new Guarantee and then photocopying and faxing it; and
3. From approximately March 2007 to October 2008 engaged in business conduct or
practice that was unbecoming or detrimental to the public interest contrary to Dealer Member
Rule 29.1 in that she attempted to frustrate or obstruct separate investigations
being conducted by her firm and by IIROC into the subject matter of Counts 1 and 2 by:
(a) providing answers that were not true or complete with respect to her actions
and intentions relating to those Counts;
(b) altering a courier delivery receipt so as to support a version of the facts that
she had previously given and presenting it in its altered version to IIROC
© suborning her assistant Bonnie Reside to make evasive or misleading
statements to her firm and IIROC that were favourable to the Respondent
and consistent with the story she had told them.
IIROC formally initiated the investigation into the Respondent’s conduct on July 3, 2007. The
violations occurred when the Respondent was a Registered Representative (RR) with the 240-
730 View Street Branch of Wellington West Capital Inc. in Victoria, British Columbia. The
Respondent is currently an RR with the 340A-730 View Street, Victoria, British Columbia sub-
branch of Queensbury Securities Inc., an IIROC-regulated firm.
The hearing is open to the public, unless the Hearing Panel orders otherwise. The Hearing
Panel’s decision and reasons will be made available to the public.
IIROC is the national self-regulatory organization which oversees all investment dealers and
trading activity on debt and equity marketplaces in Canada. Created in 2008 through the
consolidation of the Investment Dealers Association of Canada and Market Regulation Services
Inc., IIROC sets high quality regulatory and investment industry standards, protects investors
and strengthens market integrity while maintaining efficient and competitive capital markets.
IIROC carries out its regulatory responsibilities through setting and enforcing rules regarding
the proficiency, business and financial conduct of dealer firms and their registered employees
and through setting and enforcing market integrity rules regarding trading activity on
Canadian equity marketplaces.
For further information, please contact:
Vice President, Western Canada
Acting Vice President, Enforcement