MFDA Hearing Panel approves three settlement agreements in signature cases

TORONTO, Aug. 2, 2016 /CNW/ - On July 28, 2016, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three (3) separate proceedings, the particulars of which are:

Christopher Garofalo

A settlement hearing in the matter of Christopher M. Garofalo ("Garofalo") was held on July 28, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which Garofalo:

• has paid a fine in the amount of $8,500;
• has paid costs in the amount of $2,500; and
• shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Garofalo admitted that between January 2013 and May 2014, he did not adequately supervise his unlicensed assistants, for whom he was responsible, with respect to the use of five pre-signed account forms and one account form where the Garofalo's assistant had cut a client signature from a previously signed account form and re-used it, 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, Garofalo carried on business in the Cambridge, Ontario area.

Bobby Gocool

A settlement hearing in the matter of Bobby Donkar Narine Gocool ("Gocool") was held on July 28, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which Gocool:

• has paid a fine in the amount of $15,000;
• has paid costs in the amount of $2,500; and
• shall in the future comply with MFDA Rules 2.1.1 and 2.5.5.

In the Settlement Agreement, Gocool admitted that:

a)	between January 2013 and August 2014, he obtained, possessed, and in some instances, used to process transactions, 52 pre-signed account forms in respect of 10 clients, contrary to MFDA Rule 2.1.1;
b)	between January 2013 and August 2014, he altered and used five client account forms in respect of five clients by using liquid correction fluid to change information on the account forms to reflect client instructions, without having the clients initial the changes, contrary to MFDA Rule 2.1.1; and
c)	between January 2013 and August 2014, he, acting in the capacity of branch manager, reviewed and approved the use of 54 account forms, 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, Gocool carried on business in the Vaughan, Ontario area.

Eronaldo De Souza

A settlement hearing in the matter of Eronaldo De Souza ("De Souza") was held on July 28, 2016 at which the Hearing Panel approved the settlement agreement (the "Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which De Souza:

i)	has paid fine in the amount of $4,500 (the "Fine");
ii)	has paid costs in the amount of $2,500 ("Costs");
iii)	the Fine and Costs shall be paid in seven installments: the first installment in the amount of $2,500 shall be paid on the date of the settlement hearing, the remaining six installments in the amount of $750 each are payable on or before the final business day of the six months that follow the date of the acceptance of the settlement agreement by the Hearing Panel;
iv)	if De Souza fails to make any of the installment payments described in subparagraphs (i)-(iii) above when the payments become due, then without further notice to De Souza, De Souza shall summarily be suspended from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member until the full amount of the Fine and Costs have been paid
v)	shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, De Souza admitted that between June 2008 and January 2015, he obtained, possessed, and in two instances, used to process trades, four pre-signed account forms in respect of one client, 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, De Souza carried on business in in the Toronto, 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 83,000 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]