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SOURCE Mutual Fund Dealers Association of Canada
TORONTO, March 8, 2013 /CNW/ - A disciplinary hearing in the matter of
Sandra Levine (the "Respondent") was held today in Toronto, Ontario
before a three-person Hearing Panel of the MFDA's Central Regional
Council. The Hearing Panel found that the allegations against the
Respondent in the Notice of Hearing dated August 3, 2012 had been
established and imposed the following sanctions and costs on the
Respondent at the conclusion of the hearing:
-
a permanent prohibition from conducting securities related business in
any capacity while in the employ of or associated with any MFDA Member;
-
a fine of $25,000; and
-
costs of $7,500.
The Notice of Hearing contained the following allegations:
Allegation #1: Between November 23, 2006 and January 5, 2010, the Respondent
deposited in her personal bank account 45 cheques worth a total of
$52,300 drawn on the bank account of client HD and made payable to the
Respondent personally and used the monies for her benefit, thereby
engaging in personal financial dealings with a client which gave rise
to a conflict or potential conflict of interest between the interests
of the Respondent and the interests of client HD, which the Respondent
failed to ensure was addressed by the exercise of responsible business
judgment influenced only by the best interests of client HD, contrary
to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: Between November 23, 2006 and January 5, 2010, the Respondent
falsified the signature of client HD on at least 11 cheques drawn on
client HD's personal bank account and made payable to the Respondent
personally, which the Respondent then deposited in her personal bank
account, thereby failing to observe high standards of ethics and
conduct in the transaction of business, contrary to MFDA Rule 2.1.1.
Allegation #3: On June 18, 2008, the Respondent became designated as a beneficiary to
a client HD's segregated fund account with the Respondent's knowledge
and approval, thereby giving rise to a conflict or potential conflict
of interest between the interests of client HD and the interests of the
Respondent which the Respondent failed to ensure was addressed by the
exercise of responsible business judgment influenced only by the best
interests of client HD, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #4: Commencing on November 23, 2006, the Respondent failed to comply with
the policies and procedures of the Member in respect of conflicts of
interest by depositing in her personal bank account cheques worth a
total of $53,200 drawn on the bank account of client HD and knowingly
becoming a beneficiary to client HD's segregated fund account, thereby
interfering the ability of the Member to supervise the Respondent and
to comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA
Rules 1.1.2 and 2.5.1, and MFDA Rule 2.1.1.
The Hearing Panel advised that it will issue written reasons for its
decision in due course. 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 115 Members and their approximately 80,000 Approved
Persons with a mandate to protect investors and the public interest.
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