MFDA announces settlement hearing to take place in respect of Kenneth Karasick
TORONTO, June 2, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Kenneth Brian Karasick (the "Respondent") by Notice of Hearing (the "Notice of Hearing") dated December 22, 2014.
As the result of a settlement agreement entered into between Staff of the MFDA and the Respondent, the settlement hearing in this proceeding will take place on June 3, 2015 commencing at 10:00 a.m. (Pacific), or as soon thereafter as the hearing can be held, in the hearing room at the British Columbia Securities Commission, located at 1200-701 West Georgia Street, Vancouver, British Columbia.
The subject matter of the proposed settlement agreement concerns matters for which the Respondent may be disciplined pursuant to ss. 20 and 24.1.1 of By-law No. 1 of the MFDA. In particular, the settlement agreement concerns allegations that the Respondent:
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From March 16, 2009 to July 16, 2009, accepted and held a power of attorney from client FM in favour of himself, contrary to MFDA Rule 2.3.1(a); |
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| (b) |
From May 22, 2009 to July 11, 2012, 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; |
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| (c) |
From July 2009 to January 2013, engaged in personal financial dealings with client FM by accepting 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; and |
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| (d) |
Misled the Member by falsely answering the Member's Annual Consultant Certifications by stating that: |
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in 2009, he did not hold a POA over any clients at the Member; |
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in 2011, he was not aware of being named as the beneficiary of a client's estate or any client account held with the Member; and |
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| (c) |
in 2009, 2010, 2011 and 2012, he had not received any monetary gifts from clients, |
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| thereby interfering with the ability of the Member to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and 2.1.1 |
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The hearing will be open to the public, unless and to the extent that the Hearing Panel determines that all or part of the hearing should proceed in the absence of the public. If the Hearing Panel accepts the settlement agreement, then a copy of the decision of the Hearing Panel and the settlement agreement will be made available to the public.
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 103 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
Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]
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