MFDA Hearing Panel makes findings against Rouzbeh Vatanchi and Kitty Ho
TORONTO, June 29, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Rouzbeh Vatanchi ("Vatanchi") and Kitty Ho ("Ho") (collectively, the "Respondents") by Notice of Hearing (the "Notice of Hearing") dated October 14, 2014.
A disciplinary hearing in this matter was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After hearing the evidence and submissions from Staff of the MFDA, the Hearing Panel found that the following allegations concerning the Respondents had been established:
| i) |
between 2009 and 2011, the Respondents engaged in securities related business that was not carried on for the account and through the facilities of the Member by recommending, selling, referring or facilitating the sale of $175,000 of promissory notes to client MR and one other individual, NM, outside the Member, contrary to MFDA Rules 1.1.1, 2.4.2 and 2.1.1; |
| ii) |
between about 2009 and 2011, Vatanchi misled NM and client MR as to the reason why the Ontario Securities Commission contacted them about the promissory notes and counselled client MR to make a false statement to the Ontario Securities Commission, contrary to MFDA Rules 2.1.1 and 2.1.4; |
| iii) |
commencing April 2013, the Respondents failed or refused to cooperate with an investigation conducted by Staff by failing or refusing to provide copies of bank account statements requested by Staff during the course of an investigation, contrary to s. 22.1 of MFDA By-law No. 1. |
The Hearing Panel imposed the following sanctions on the Respondents and advised that it will issue written reasons for its decision in due course:
As against Vatanchi:
- Vatanchi is permanently prohibited from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member;
- Vatanchi shall pay a fine in the amount of $125,000; and
- Vatanchi shall pay costs in the amount of $7,500.
As against Ho:
- Ho is permanently prohibited from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member;
- Ho shall pay a fine in the amount of $75,000; and
- Ho shall pay costs in the amount of $7,500.
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 Respondents carried on business in the Greater Toronto Area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 103 Members and their over 80,000 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]
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