MFDA Hearing Panel issues Decision and Reasons (Penalty) in the matter of Henry Wen-Hwei Huang

TORONTO, Sept. 9, 2016 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons (Penalty) dated September 8, 2016 ("Decision and Reasons") in connection with a disciplinary hearing held in Toronto, Ontario on August 10, 2016 in the matter of Henry Wen-Hwei Huang (the "Respondent").

The parties filed an Agreed Statement of Facts ("Agreed Statement of Facts") in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1. In particular, the Respondent admitted that:

a)	between September 2, 2011 and October 11, 2012, he falsified the identity of the account holder on void cheques and changed the address of the three clients on record with the fund company to his own personal address, in order to facilitate the deposit of the proceeds of the redemptions from the investment accounts of the three clients into the Respondent's bank account, contrary to MFDA Rules 2.1.1 and 2.1.4;
b)	in February 2007, he submitted a loan application to a lender which contained false KYC information to facilitate the implementation of a leverage investment strategy he recommended to client XLK, thereby failing to observe high standards of conduct in the transaction of business and engaging in conduct detrimental to the public interest, contrary to MFDA Rules 2.1.1 and 2.1.4;
c)	In October 2012, without the knowledge or authorization of clients XLK and MW, he:
	i.	falsified the signatures of clients XLK and MW on KYC information update forms, risk disclosure acknowledgement forms and trade instruction forms;
	ii.	recorded false KYC information for the account of client MW; and
	iii.	processed unauthorized trades in the accounts of clients MW and XLK;
	contrary to MFDA Rules 2.2.1, 2.1.4 and 2.1.1.
d)	On November 19, 2014, he provided false answers during an interview with Staff in the course of an investigation into his conduct, thereby failing to cooperate with the MFDA's investigation, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.

In its Decision and Reasons, the Hearing Panel imposed the following sanctions on the Respondent:

a)	a permanent prohibition on the authority to conduct securities related business in any capacity while in the employ of, or in association with, any MFDA Member, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
b)	a fine of $25,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1; and
c)	costs attributable to conducting the investigation and hearing of this matter in the amount of $7,500, pursuant to s. 24.2 of MFDA By-law No. 1.

Copies of the Decision and Reasons and the Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons, the Respondent carried on business in Toronto, 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 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]