Ever committed Fraud? Thermo Tech may want you!
Thermo Tech broker banned for life
Thermo Tech Technologies Inc TTRIF
Shares issued 52,586,641
Tuesday Nov 4 1997
Mr Lyn Gilchrist reports, Notice is hereby given that the Alberta District Council of the Investment Dealers Association of Canada, following a hearing, has imposed upon Mr John Henry Lorencz, formerly a registered representative employed by RBC Dominion Securities Inc in its branch office in Edmonton, Alberta, a penalty in the form of a permanent prohibition against his approval in any capacity with any member of the association. In addition, Mr Lorencz is required to pay toward the association's costs of the investigation the amount of $7,500.
The council found that at various times between June 1986 and April 1997 Mr. Lorencz:
(1) misappropriated funds and securities from the accounts of customers, and thereby engaged in business conduct or practice unbecoming a registered representative or not in the public interest, and thereby committed violations contrary to by-law 20.10(a)(3) and former by-law 18.5(c);
(2) exercised discretionary authority to effect trades for the account of a customer without having the prior written authorization of the customer and without such account having been specifically approved and accepted in writing as a discretionary account by the designated person of the member firm, and thereby committed a violation contrary to regulation 1300.4;
(3) failed to use due diligence to ensure that recommendations for the accounts of several clients were appropriate for the said clients and in keeping with their investment objectives, and thereby committed violations contrary to regulation 1300.1(c).
On numerous occasions between June 5 1986 and January 31,1994, Mr Lorencz misappropriated funds and/or securities from several client accounts through a variety of deceptive means. At various times, Mr Lorencz obtained cheques drawn from client accounts at the member firm, which cheques were made payable to the clients or to third parties' and deposited said cheques to bank accounts under his personal control. The funds obtained in this manner were used by Mr. Lorencz for his personal benefit. On numerous other occasions, Mr. Lorencz misappropriated securities from client accounts and converted them to his own use. In most instances, Mr Lorencz arranged to take possession of client securities held by the member firm, ostensibly for the purpose of personally delivering the securities to the relevant clients. Instead of delivering the securities to the appropriate clients, Mr Lorencz held the securities for various time periods, then re-deposited the securities into one of two clearing accounts which he controlled and operated. Thereafter, Mr Lorencz usually liquidated the relevant securities and used the proceeds to trade in other securities and/or withdrew cheques for his own benefit. In total, Mr Lorencz misappropriated client funds and securities valued in excess of $2.1 million.
With respect to one of the aforementioned client accounts, Mr Lorencz engaged in unauthorized trading and in the deliberate diversion of the client's monthly account statements. Mr Lorencz provided the client with false account statements indicating that the client's account continued its conservative investment strategy, mainly holding government bonds. Providing the false statements to the client enabled Mr Lorencz to withdraw cash and securities and trade speculative securities in the account without the knowledge or consent of the client.
Between January 1993 and February 1994, Mr Lorencz recommended that many of his clients purchase shares of Thermo Tech Technologies Inc, a company listed on the Vancouver Stock Exchange. On numerous occasions and with respect to several clients, the recommendations to purchase the said shares, which were speculative, in the amounts recommended, were not appropriate for the client and/or not in keeping with his or her investment objectives. Upon discovery of his conduct, the member firm terminated Mr Lorencz's employment, for cause. Since then, Mr Lorencz has not been employed with any member.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Van Sun says questionable ex-broker now works at Thermo Tech
Thermo Tech Technologies Inc TTR
Shares issued 8,177,508
1995-01-19 close $3.8
Friday Jan 20 1995
The Vancouver Sun reports in its Friday edition that a former Edmonton stockbroker who left RBC Dominion Securities after filling an elderly client's account with $12 million worth of Thermo Tech Technologies shares now appears to work at Thermo Tech. Reporter David Baines says John Lorencz works at Thermo Tech's offices in Langley, but his relationship with the company is fuzzy. Mr Lorencz says he has a shareholding in Thermo Tech and he comes into the office, but that is his only connection with the company at the present. However, the Sun reports a receptionist identified Mr Lorencz as vice-president and executive officer, but after speaking to someone else in the office, she apologized and said he is only there as an investor, and he sends out pamphlets. The Sun reports VSE publicist Dave Laundy denies the exchange knew of the problem, a position the IDA contests.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Van Sun says elderly investor sues RBC Dominion over Thermo Tech trading
Thermo Tech Technologies Inc TTR
Shares issued 8,177,508
1995-01-18 close $4.25
Thursday Jan 19 1995
The Vancouver Sun reports in its Thursday edition that an elderly Edmonton woman is suing RBC Dominion Securities for allegedly loading up her account with shares of Thermo Tech Technologies. Reporter David Baines says 79-year-old Mary Hanson claims RBC and its former broker, John Lorencz, invested $12 million of her $19 million portfolio in Thermo Tech. The Sun says Thermo Tech's share price, boosted by a series of promoters, jumped from $3 in August 1993 to a high of $14.75 in February 1994 then headed due south. The Sun says Ms Hanson's suit claims she held mainly low-risk stocks and bonds, but Mr Lorencz sold these to buy Thermo Tech shares after her husband died in August 1993. The Sun says insider reports show that by February 1994, when the stock peaked, she had bought 1.2 million shares, or 20 per-cent of the outstanding, and she accounted for at least 38 per-cent of total trading in the stock.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
