MFDA Hearing Panel approves five settlement agreements
TORONTO, July 4, 2018 /CNW/ - On June 28, 2018, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following five proceedings, the particulars of which are:
Xiang (Shawn) He
A settlement hearing in the matter of Xiang (Shawn) He ("He") was held on June 28, 2018 at which the Hearing Panel approved the settlement agreement dated May 2, 2018 ("Settlement Agreement") between Staff of the MFDA and He, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $9,500;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, He admitted that:
| a) |
on February 29, 2016, he signed the signature of a client on an account form, and submitted the account form to the Member for processing, contrary to MFDA Rule 2.1.1; and |
| b) |
on March 3, 2016, during the course of the Member's investigation, he falsely represented to the Member that a client had signed an account form, contrary to MFDA Rule 2.1.1. |
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, He carried on business in Toronto, Ontario.
James Chan
A settlement hearing in the matter of James Chan ("Chan") was held on June 28, 2018 at which the Hearing Panel approved the settlement agreement dated April 23, 2018 ("Settlement Agreement") between Staff of the MFDA and Chan, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $7,500;
- costs in the amount of $2,500; and
- a prohibition from acting as a branch manager for a period of one month;
- shall in the future comply with MFDA Rules 2.5.5 and 2.1.1.
In the Settlement Agreement, Chan admitted that:
| a) |
between April 2016 and August 2016, he obtained, possessed and, in some instances, used to process transactions, six pre-signed account forms, contrary to MFDA Rule 2.1.1; and |
| b) |
on April 20, 2016, he, in his capacity as branch manager, reviewed and approved the use of one pre-signed account form, contrary to MFDA Rules 2.5.5(f) and 2.1.1. |
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Chan carried on business in Richmond Hill, Ontario.
Sajad Gulamali
A settlement hearing in the matter of Sajad Gulamali ("Gulamali") was held on June 28, 2018 at which the Hearing Panel approved the settlement agreement dated January 18, 2018 ("Settlement Agreement") between Staff of the MFDA and Gulamali, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $8,000;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Gulamali admitted that:
| a) |
between January 2006 and November 2014, he altered, and used to process transactions, five account forms in respect of five clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and |
| b) |
between March 2006 and November 2015, he obtained, possessed, and in some instances, used to process transactions, 32 pre-signed account forms in respect of 16 clients, contrary to MFDA Rule 2.1.1. |
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Gulamali carried on business in Toronto, Ontario.
Simon Chi Ming Wong
A settlement hearing in the matter of Simon Chi Ming Wong ("Wong") was held on June 28, 2018 at which the Hearing Panel approved the settlement agreement dated April 12, 2018 ("Settlement Agreement") between Staff of the MFDA and Wong, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $17,000;
- costs in the amount of $2,500; and
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Wong admitted that:
| a) |
between July 2015 and November 2016, he falsified, and used to process transactions, six account forms in respect of eight clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and |
| b) |
between February 2009 and February 2017, he obtained, possessed, and in some instances, used to process transactions, 80 pre-signed account forms in respect of 57 clients, contrary to MFDA Rule 2.1.1. |
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Wong carried on business in Toronto, Ontario.
Trevor Rosborough
A settlement hearing in the matter of Trevor Rosborough ("Rosborough") was held on June 28, 2018 at which the Hearing Panel approved the settlement agreement dated May 30, 2018 ("Settlement Agreement") between Staff of the MFDA and Rosborough, as a consequence of which the following sanctions were imposed:
- a fine in the amount of $10,000;
- costs in the amount of $2,500;
- shall in the future comply with MFDA Rule 2.1.1.
In the Settlement Agreement, Rosborough admitted that between September 2009 and November 2016, he obtained, possessed, and in at least 14 instances used to process transactions, 23 pre-signed account forms in respect of 18 clients, contrary to MFDA Rule 2.1.1.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Rosborough carried on business in Strathroy, Ontario.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 82,000 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
Charles Toth, Director, Litigation, 416-943-4619, [email protected]
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