Canaccord responds to unauthorized trading case
2013-01-22 13:43 ET - Street Wire
by Mike Caswell
Canaccord Genuity Corp. denies that one of its former brokers, Lawrence Chang, carried out unauthorized trades that inflicted substantial losses on a retired couple. The couple was completely aware of the trades, and did not object to them at the time, Canaccord says.
The denials come in response to a lawsuit Canaccord is facing in the Supreme Court of British Columbia from a retired couple, Hassan Kardan and Homa Nebavi. They claimed that Mr. Chang used their money for unsuitable trades in a number of risky companies after they opened accounts with him in November, 2006. As a result, they lost substantially all the money they invested, which was $1.89-million (U.S.) plus $288,404 (Canadian), the suit alleged.
Canaccord, in its response, denies there were any unauthorized trades, and says even if there were the firm has no responsibility for the loss. The couple understood the risks of trading securities and were completely aware of the trades in their accounts, the response states. Canaccord also points out that the couple invested additional money with Mr. Chang in March, 2007, after suffering much of the losses he allegedly caused.
Couple sues Canaccord
The case began on Nov. 15, 2012, when Mr. Kardan and Ms. Nebavi filed a notice of claim against Canaccord at the Vancouver courthouse. They said they opened accounts with Mr. Chang in November, 2006, and told him they were not sophisticated investors. They had total assets of about $3.5-million.
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