MFDA Hearing Panel makes findings against Meiz Majdoub

TORONTO, Oct. 29 /CNW/ - A disciplinary hearing in the matter of Meiz Mohammed Majdoub (the "Respondent") was held on October 27, 2010 in Toronto, Ontario before a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").

The Hearing Panel found that Allegations #1 and #2 in the Notice of Hearing, set out below, had been established:

Allegation #1: Between January 2005 and September 2005, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by selling or facilitating the sale of approximately $840,000 of units in investment products that were not approved for sale by the Member to 19 individuals, contrary to:

		(a)     MFDA Rules 1.1.1 and 2.1.1; and
		(b)     the policies and procedures of the Member and MFDA Rules 1.1.2 and 2.5.1.

Allegation #2: Between December 2004 and January 2006, the Respondent engaged in a dual occupation which was not disclosed to and approved by the Member or securities regulators by operating companies to raise capital and provide sales and administrative support for a capital raising entity, contrary to:

		(a)     MFDA Rules 1.2.1(d) and 2.1.1; and
		(b)     The policies and procedure of the Member and MFDA Rules 1.1.2 and 2.5.1.

The Hearing Panel made the following orders at the conclusion of the hearing and advised that it would issue written reasons for its decision in due course:

• The Respondent is permanently prohibited from conducting securities related business while in the employ of or associated with any Member of the MFDA;
• The Respondent shall pay a fine in the amount of $120,000; and
• The Respondent shall pay costs to the MFDA in the amount of $10,000.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 137 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-6472 or [email protected]