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For further information, please contact:

Charles Toth

Director, Litigation

(416) 943-4619

ctoth@mfda.ca

Jeff Mount

Vice-President, Pacific Region

(604) 694-8846

jmount@mfda.ca

MFDA Hearing Panel issues Reasons for Decision in the matter of Lucas Stemshorn-Russell

March 8, 2018 (Toronto, Ontario) – A Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) has issued its Reasons for Decision dated March 7, 2018 in connection with a settlement hearing held in Vancouver, British Columbia on January 22, 2018 in the matter of Lucas Stemshorn-Russell (“Respondent”).

In its Reasons for Decision, the Hearing Panel confirmed the sanctions imposed on the Respondent. In particular, the Respondent:

  • is prohibited from conducting securities related business in any capacity while in the employ of or associated with a MFDA Member for a period of six months;
  • shall pay a fine in the amount of $2,500 (“Fine”);
  • has paid costs in the amount of $2,500 (“Costs”);
  • payment of the Fine and Costs shall be made to and received by MFDA Staff in certified funds as follows:
    1. $2,500 (Costs) upon acceptance of the Settlement Agreement by the Hearing Panel;
    2. $250 on or before the last business day of the first month following the date of Settlement Agreement;
    3. $250 on or before the last business day of the second month following the date of Settlement Agreement;
    4. $250 on or before the last business day of the third month following the date of Settlement Agreement;
    5. $250 on or before the last business day of the fourth month following the date of Settlement Agreement;
    6. $250 on or before the last business day of the fifth month following the date of Settlement Agreement;
    7. $250 on or before the last business day of the sixth month following the date of Settlement Agreement;
    8. $250 on or before the last business day of the seventh month following the date of Settlement Agreement;
    9. $250 on or before the last business day of the eighth month following the date of Settlement Agreement;
    10. $250 on or before the last business day of the ninth month following the date of Settlement Agreement;
    11. $250 on or before the last business day of the tenth month following the date of Settlement Agreement;
  • should he fail to make any of the payments described above:
    1. any outstanding balance of the Fine owed shall become immediately due and payable to the MFDA; and
    2. he shall be prohibited from conducting securities related business while in the employ of or associated with a Member of the MFDA until such time as the total amount outstanding of the Fine owed is paid to the MFDA;
  • shall in the future comply with MFDA Rules 2.1.1.

In the Settlement Agreement dated November 27, 2017, the Respondent admitted that in or about June 2016, he cut and pasted client signatures from account forms previously signed by two clients onto two new account forms, contrary to MFDA Rule 2.1.11.

Copies of the Reasons for Decision and the Settlement Agreement are available on the MFDA website at www.mfda.ca. During the period described in the Reasons for Decision, the Respondent carried on business in the Sidney, British Columbia area.

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.