MFDA announces disciplinary proceeding in respect of Kenneth Karasick
TORONTO, Jan. 29, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Kenneth Brian Karasick (the "Respondent"). In its Notice of Hearing dated December 22, 2014, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary the By-laws, Rules and/or Policies of the MFDA:
Allegation #1: From March 16, 2009 to July 16, 2009, the Respondent accepted and held a power of attorney from client FM in favour of himself, contrary to MFDA Rule 2.3.1(a).
Allegation #2: From May 22, 2009 to July 11, 2012, the Respondent was designated as a beneficiary of client FM's in-trust account at the Member, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rule 2.1.4.
Allegation #3: From July 2009 to January 2013, the Respondent engaged in personal financial dealings with client FM by accepting and retaining a monetary gift of $309,475, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #4: The Respondent misled the Member by falsely answering the Member's Annual Consultant Certifications with regard to whether:
| a) |
in 2009, 2010, 2011 and 2012, he had received any monetary gifts from clients; and |
| b) |
in 2011, he was aware that he had been named as the beneficiary of a client's estate or any client account at the Member; |
thereby engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on March 26, 2015 at 10:00 a.m. (Pacific), in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will take place in the MFDA hearing room located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, and will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Vancouver, British Columbia at a time and venue to be announced.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent carried on business in Vancouver, British Columbia.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 107 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA's complaint and enforcement processes, as well as links to 'Check an Advisor' and other Investor Tools, visit the For Investors page on the MFDA website.
SOURCE Mutual Fund Dealers Association of Canada
Hugh Corbett, Managing Director, Enforcement, 416-943-4685, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]
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