MFDA announces disciplinary proceeding in respect of Rouzbeh Vatanchi and Kitty Ho
TORONTO, Nov. 10, 2014 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced a disciplinary proceeding in respect of Rouzbeh Vatanchi ("Vatanchi") and Kitty Ho ("Ho") (collectively, the "Respondents"). Staff of the MFDA alleges in its Notice of Hearing, dated October 14, 2014 that the Respondents engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:
| Allegation #1: |
Between 2008 and 2011, the Respondents engaged in securities related business that was not carried on for the account and through the facilities of the Member by recommending, selling, referring or facilitating the sale of $175,000 of promissory notes to client MR and one other individual, NM, outside the Member, contrary to MFDA Rules 1.1.1, 2.4.2 and 2.1.1. |
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| Allegation #2: |
Between about 2008 and 2011, the Respondents had and continued in another gainful occupation which was not disclosed to and approved by the Member by recommending, selling, referring or facilitating the sale of at least $175,000 of promissory notes outside the Member, contrary to MFDA Rules 1.2.1(d) and 2.1.1. |
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| Allegation #3: |
Between about 2008 and 2011, the Respondents engaged in conduct unbecoming an Approved Person and contrary to client MR's interests by recommending, selling, referring or facilitating the purchase of promissory notes by NM and client MR outside the Member in circumstances where: |
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| a) |
they knew or ought to have known that they had not made any or sufficient inquiries to determine whether the promissory notes complied with Ontario securities law; |
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| b) |
they requested and received monies from the issuer of the promissory notes for their personal benefit shortly after the investments were made; and |
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| c) |
the Respondent, Rouzbeh Vatanchi (only) misled NM and client MR as to the reason why the Ontario Securities Commission contacted them about the promissory notes and counselled client MR to make a false statement to the Ontario Securities Commission; contrary to MFDA Rules 2.1.1 and 2.1.4. |
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| Allegation #4: |
Commencing April 2013, the Respondents failed or refused to cooperate with an investigation conducted by Staff by failing or refusing to provide copies of bank account statements requested by Staff during the course of an investigation, contrary to s. 22.1 of MFDA By-law No. 1. |
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The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on December 3, 2014, at 10:00 a.m. (Eastern), in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The appearance will take place in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario, 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 Toronto, Ontario.
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 the Greater Toronto Area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 108 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]
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