Regulators have fined Canaccord Capital Corp. and two branch managers $750,000 for failing to supervise an employee who traded in clients' accounts without their permission.

The Investment Dealers Association fined the Vancouver-based Canaccord $500,000.

Two co-branch managers at Canaccordwere also fined.Donald Grant Macdonald has been fined $125,000and has been barred from registering with any IDA firm, and Paul Peter DiPasquale was fined $100,000 and had his registration as a branch manager suspended for six months.

The IDA also levied costs of $25,000against Canaccord and the two managers.

Canaccord admitted that it failed to have adequate procedures in place to supervise the activities of a broker at its Burrard Street branch in Vancouver.

Between 1997 and 2001, the brokercarried out more than 875 unauthorized trades in the accounts of 225 clients at Canaccord, and at Brink, Hudson & Lefever —a company bought by Canaccord in 1998.

It turned out that the brokerhad been suffering from a mental illness. He is no longer a registered representative.

Canaccord subsequently made good on client losses totalling $9.7 million.