MFDA Hearing Panel makes findings and imposes sanctions against Paul Wemple
TORONTO, May 4, 2017 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced disciplinary proceedings in respect of Paul Leland Wemple ("Respondent") by Notice of Hearing dated August 22, 2016 ("Notice of Hearing").
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 submissions from Staff of the MFDA, the Hearing Panel found that the three (3) allegations concerning the Respondent set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct against the Respondent:
Allegation #1: Between February 8, 2002 and December 6, 2014, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member by selling, recommending, referring or facilitating the sale of unapproved investment products to clients and other individuals outside the Member, contrary to MFDA Rules 1.1.1, 2.1.4, 2.4.2, and 2.1.1, and sections 13.7 to 13.10 of National Instrument 31-103.
Allegation #2: Between February 8, 2002 and December 6, 2014, the Respondent engaged in dual occupations, which were not disclosed to and approved by the Member, by:
| a) |
selling, recommending, referring or facilitating the sale of unapproved investment products to clients and other individuals outside the Member; |
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| b) |
acting as the President, the Treasurer and a Director of a corporation known as Syndacore Technologies Management Inc.; |
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| c) |
operating, including acting as an Officer and/or Director of, corporations known as Miser Lighting Inc., Miser Lighting Sales Inc. and Magnetic Lighting Sales Inc. |
contrary to MFDA Rules 1.2.1(c) (now Rule 1.3.2) and 2.1.1.
Allegation #3: From February 8, 2002 to December 6, 2014, the Respondent misled the Member on compliance attestations and during compliance reviews when he failed to disclose that he was:
| a) |
selling, recommending, referring or facilitating the sale of unapproved investment products to clients and other individuals outside the Member; |
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| b) |
acting as the President, the Treasurer and a Director of a corporation known as Syndacore Technologies Management Inc.; |
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| c) |
operating, including acting as an Officer and/or Director of, corporations known as Miser Lighting Inc., Miser Lighting Sales Inc. and Magnetic Lighting Sales Inc.; |
thereby interfering with the ability of the Member to supervise the Respondent, contrary to MFDA Rules 1.1.2, 2.5.1 and 2.1.1.
The Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons for its decision in due course:
- a permanent prohibition on his authority to conduct securities related business in any capacity while in the employ of, or in association with, any MFDA Member;
- a fine in the amount of $250,000; and
- costs in the amount of $10,000.
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 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]
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