MFDA issues Notice of Hearing regarding James Woloshen

TORONTO, Nov. 2 /CNW/ - The Mutual Fund Dealers Association of Canada today announced that it has commenced disciplinary proceedings against James Woloshen (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary to the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between February 8, 2002 and December 2007, the Respondent engaged in personal financial dealings with clients GB and JB by borrowing a total of $50,000 from them and thereafter misappropriating the monies, thereby giving rise to a potential or actual conflict of interest which was not addressed by the exercise of responsible business judgment influenced only by the best interests of clients GB and JB and failing to deal fairly, honestly and in good faith with clients GB and JB, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #2: Between about September 2005 and December 2008, the Respondent engaged in personal financial dealings with clients RE and JE by borrowing $20,000 from them which he failed to fully repay, thereby giving rise to a potential or actual conflict of interest that was not addressed by the exercise of responsible business judgment influenced only by the best interests of clients RE and JE and failing to deal fairly, honestly and in good faith with clients RE and JE, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #3: Between about February 2004 and December 2006, the Respondent referred clients to a charitable donation program and received $93,600 in referral fees for doing so, thereby:

(a)     having and continuing in another gainful occupation that was not disclosed to and approved by the Member, contrary to MFDA Rule 1.2.1(d); and

(b)     participating in a referral arrangement, contrary to MFDA Rule 2.4.2.

Allegation #4:  Commencing in about September 2009, the Respondent failed to cooperate with an investigation of his conduct, contrary to section 22.1 of MFDA By-law No. 1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on November 9, 2010 at 10:00 a.m. (Eastern) in the Hearing Room located at the offices of the MFDA, 121 King Street West, Suite 1000, Toronto, Ontario.

The purpose of the first appearance is to schedule the date for the commencement of the hearing on its merits and to address any other procedural matters. The first appearance will be open to the public, except as may be required for the protection of confidential matters.

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,
416-943-4672 or [email protected]