MFDA Hearing Panel makes findings against Duke Ongechi
TORONTO, Aug. 26, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Duke Mongare Ongechi ("Respondent") by Notice of Hearing dated October 16, 2018.
The misconduct phase of this disciplinary proceeding was held on July 17-18, 2019 in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. The Hearing Panel has made the following findings of misconduct against the Respondent:
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Between about 2014 and 2015, the Respondent referred or assisted at least five clients to invest in or loan monies to a retail clothing business, thereby engaging in an undisclosed and unapproved outside activity, contrary to MFDA Rules 1.2.1(c) (now Rule 1.3) and 2.1.1. |
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b) |
In or about September 2015, the Respondent signed a promissory note in which he agreed to pay $19,755 to a client pertaining to the client's investment in or loan to a retail clothing company, and provided personal cheques to the client to pay the amounts owed pursuant to the terms of the promissory note, thereby: |
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engaging in personal financial dealings with a client which created a conflict or potential conflict of interest that the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1; and |
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entering into a settlement agreement with a client without the Member's knowledge or prior written consent, contrary to MFDA Rules 2.1.4 and 2.1.1, and MFDA Policy No. 3. |
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c) |
Between December 2015 and March 2016, the Respondent failed to report to the Member, within two business days or at all, that the Respondent had been named as a defendant in one civil claim commenced by clients, and that there was a garnishment order rendered against the Respondent pursuant to a civil claim commenced by a client, contrary to MFDA Rules 1.4(b) and 2.1.1, and section 4 of MFDA Policy No. 6. |
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d) |
Commencing in October 2016, the Respondent provided false or misleading statements to: |
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i. |
the Member during the course of its investigation into his conduct, thereby interfering with the Member's ability to supervise and investigate the Respondent's conduct, contrary to MFDA Rule 2.1.1; and |
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MFDA Staff during the course of its investigation into the Respondent's conduct, thereby interfering with MFDA Staff's ability to conduct its investigation, contrary to MFDA Rule 2.1.1 and section 22.1 of MFDA By-law No. 1. |
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The Hearing Panel advised that it will issue written reasons for its decision as to misconduct in due course. Submissions with respect to penalty will take place on a date to be determined and announced accordingly.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Pickering, 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]
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