MFDA Hearing Panel approves three settlement agreements

TORONTO, Nov. 4, 2019 /CNW/ - On October 31, 2019, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three settlement proceedings, the particulars of which are:

Lloyd Smith

A hearing in the matter of Lloyd Edward Smith ("Smith") was held on October 31, 2019 at which the Hearing Panel approved the settlement agreement dated September 17, 2019 ("Settlement Agreement") between Staff of the MFDA and Smith, as a consequence of which the following sanctions were imposed:

• a prohibition from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of six months;
• a fine in the amount of $20,000;
• costs in the amount of $2,500; and
• shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Smith admitted that:

1. between July 2007 and February 2018, he altered and in some instances, used to process transactions, 30 account forms in respect of 28 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and
2. between January 2009 and August 2017, he obtained, possessed, and in some instances, used to process transactions, 215 pre-signed account forms in respect of 25 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, Smith carried on business in the Ottawa, Ontario area.

David Dekker

A hearing in the matter of David Edward Dekker ("Dekker") was held on October 31, 2019 at which the Hearing Panel approved the settlement agreement dated September 11, 2019 ("Settlement Agreement") between Staff of the MFDA and Dekker, as a consequence of which the following sanctions were imposed:

• a fine in the amount of $12,500, payable in instalments as follows:

1. $7,500, upon acceptance of the Settlement Agreement;
2. $5,000, on or before April 30, 2020;

• costs in the amount of $2,500; and
• shall in future comply with MFDA Rules 1.1.1(a), 1.1.2, 2.1.1 and 2.5.1.

In the Settlement Agreement, Dekker admitted that:

1. between December 2003 and January 2017, he obtained, possessed, and in some instances, used to process transactions, 22 pre-signed account forms in respect of 17 clients, contrary to MFDA Rule 2.1.1;
2. between November 2010 and March 2014, he altered and used to process transactions, 13 account forms in respect of ten clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1; and
3. between October 2002 and August 2014, he submitted seven Letters of Direction directly to mutual fund companies to process transactions in the accounts of two clients without the knowledge or approval of the Member, contrary to the Member's policies and procedures and MFDA Rules 1.1.1(a), 1.1.2, 2.1.1, and 2.5.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Dekker carried on business in St. Catharines, Ontario.

Maurice Mailloux

A hearing in the matter of Maurice Allen Mailloux ("Mailloux") was held on October 31, 2019 at which the Hearing Panel approved the settlement agreement dated August 26, 2019 ("Settlement Agreement") between Staff of the MFDA and Mailloux, as a consequence of which the following sanctions were imposed:

• fine in the amount of $20,000;
• costs in the amount of $2,500; and
• shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Mailloux admitted that between December 2012 and April 2018, he obtained, possessed, and in some instances, used to process transactions, 99 pre-signed account forms in respect of 25 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, Mailloux conducted business in the Windsor, Ontario area.

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 81,000 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, Managing Director, Litigation, 416-943-4619, [email protected]

Related Links

www.mfda.ca