MFDA Hearing Panel accepts Settlement Agreement in the Matter of Luigi
Ciardullo

TORONTO, Nov. 26 /CNW/ - A Settlement Hearing in the matter of Luigi Francesco Ciardullo (the "Respondent") was held today in Toronto, Ontario before a Hearing Panel of the MFDA's Central Regional Council.

The Hearing Panel accepted the Settlement Agreement between the Respondent and MFDA Staff, as a consequence of which the Respondent:

• Has paid a fine in the amount of $10,000;
• Has paid costs in the amount of $2,500;
• Shall be prohibited from conducting securities related business while in the employ of, or associated with a Member of the MFDA for a period of 3 months commencing November 26, 2010;
• Shall in the future comply with all MFDA By-Laws, Rules and Policies, and all applicable securities legislation and regulations made thereunder, including MFDA Rules 1.1.1(a), 2.1.1, and 2.1.4.

In the Settlement Agreement, the Respondent admitted that, contrary to MFDA Rules:

• Between December 2005 and March 15, 2008, the Respondent failed to observe high standards of ethics and conduct in the transaction of business by accepting $150,000 from an individual, PL, to invest on PL's behalf and then providing monies to another individual, SA, for investment on her behalf, without PL's knowledge and approval;
• Between February 2006 and March 15, 2008, the Respondent engaged in personal financial dealings with a client, PL, which gave rise to an actual or potential conflict of interest between the Respondent and client PL, which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of client PL; and
• Between December 2005 and March 15, 2008, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by selling, referring or facilitating the investment of $150,000 by PL in an investment owned, managed or arranged by SA or persons unknown.  

The Hearing Panel will issue written reasons for its decision in due course. Copies of the Settlement Agreement and the Hearing Panel's Order are available on the MFDA website at www.mfda.ca.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 136 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or [email protected]