MFDA Notice of Hearing

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Notice of Hearing
File No. 201629


IN THE MATTER OF A DISCIPLINARY HEARING
PURSUANT TO SECTIONS 20 AND 24 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA


Re: Mohabeer Rambarran



NOTICE OF HEARING

NOTICE is hereby given that a first appearance will take place by teleconference before a
hearing panel of the Central Regional Council (the “Hearing Panel”) of the Mutual Fund Dealers
Association of Canada (the “MFDA”) in the hearing room at the offices of the MFDA, located at
121 King Street West, Suite 1000, Toronto, Ontario on June 23, 2016 at 9:30 a.m. (Eastern), or
as soon thereafter as the appearance can be held, concerning a disciplinary proceeding
commenced by the MFDA against Mohabeer Rambarran (the “Respondent”).

DATED this 28th day of March, 2016.

“Sarah Rickard”

Sarah Rickard

Director of Regional Councils

Mutual Fund Dealers Association of Canada
121 King Street West, Suite 1000
Toronto, ON M5H 3T9

Telephone: 416-945-5143
Facsimile: 416-361-9781
Email: corporatesecretary@mfda.ca
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NOTICE is further given that the MFDA alleges the following violations of the By-laws, Rules
or Policies of the MFDA:

Allegation #1: Between September 2006 and August 2014, the Respondent obtained, possessed,
and in some instances, used to process transactions, 51 pre-signed account forms in respect of 22
clients, contrary to MFDA Rule 2.1.1.

Allegation #2: Between September 2006 and August 2014, the Respondent falsified, and in
some instances, used to process transactions, 13 account forms in respect of 10 clients by altering
information on the forms without having the clients initial the alterations, contrary to MFDA
Rule 2.1.1.

Allegation #3: Between September 2006 and August 2014, the Respondent, acting in the
capacity of branch manager, reviewed and approved the use of 54 pre-signed and falsified
account forms, contrary to MFDA Rules 2.5.5(f) 1 and 2.1.1.

PARTICULARS

NOTICE is further given that the following is a summary of the facts alleged and intended to be
relied upon by the MFDA at the hearing:

Registration History

1.
Since November 1995, the Respondent has been registered in Ontario as a mutual fund
salesperson (now known as a Dealing Representative) with PFSL Investments Canada Ltd.
(“PFSL”), a Member of the MFDA.

2.
At all material times, PFSL designated the Respondent as the alternate branch manager in
his current branch.

1 Prior to September 2013, the Respondent’s conduct violated MFDA Rule 2.5.5(d); prior to December 2010, the
Respondent’s conduct violated MFDA Rule 2.5.3(b).
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3.
At all material times, the Respondent conducted business in the Vaughan, Ontario area.

Pre-Signed Account Forms

4.
At all material times, PFSL’s policies and procedures prohibited its Approved Persons,
including the Respondent, from holding, obtaining or using pre-signed account forms.

5.
Between September 2006 and August 2014, the Respondent obtained, possessed, and in
some instances, used to process transactions, 51 redemption forms in respect of 22 clients (the
“Pre-Signed Account Forms”).

6.
The Respondent submitted 45 of the Pre-Signed Account Forms to PFSL for processing.

7.
By virtue of the foregoing, the Respondent failed to observe a high standard of conduct
and ethics in the transaction of business and engaged in conduct unbecoming an Approved
Person, contrary to MFDA Rule 2.1.1.

Falsified Forms

8.
Between September 2006 and August 2014, the Respondent falsified, and in some
instances, used to process transactions, 13 client account forms in respect of 10 clients (the
“Falsified Forms”).

9.
The Respondent submitted 12 of the Falsified Forms to PFSL to process transactions in
client accounts.

10.
The Respondent falsified the account forms by altering information on the forms without
having the clients initial the changes.

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11.
By virtue of the foregoing, the Respondent failed to observe a high standard of conduct
and ethics in the transaction of business and engaged in conduct unbecoming an Approved
Person, contrary to MFDA Rule 2.1.1.

Approval of Pre-Signed and Falsified Forms

12.
Between September 2006 and August 2014, the Respondent, acting in the capacity of
alternate branch manager, reviewed and approved the use of 54 of the Pre-Signed Account
Forms and Falsified Forms described above in paragraphs 4-11.

13.
By virtue of the foregoing, the Respondent failed to fulfil his responsibilities as a branch
manager, contrary to MFDA Rule 2.5.5(f) (see footnote 1), and failed to observe a high standard
of conduct and ethics in the transaction of business and engaged in conduct unbecoming an
Approved Person, contrary to MFDA Rule 2.1.1.

NOTICE is further given that the Respondent shall be entitled to appear and be heard and be
represented by counsel or agent at the hearing and to make submissions, present evidence and
call, examine and cross-examine witnesses.

NOTICE is further given that MFDA By-laws provide that if, in the opinion of the Hearing
Panel, the Respondent:

 has failed to carry out any agreement with the MFDA;
 has failed to comply with or carry out the provisions of any federal or provincial statute
relating to the business of the Member or of any regulation or policy made pursuant
thereto;
 has failed to comply with the provisions of any By-law, Rule or Policy of the MFDA;
 has engaged in any business conduct or practice which such Regional Council in its
discretion considers unbecoming or not in the public interest; or
 is otherwise not qualified whether by integrity, solvency, training or experience,

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the Hearing Panel has the power to impose any one or more of the following penalties:

(a) a reprimand;
(b) a fine not exceeding the greater of:

(i)
$5,000,000.00 per offence; and
(ii)
an amount equal to three times the profit obtained or loss avoided by such person
as a result of committing the violation;

(c) suspension of the authority of the person to conduct securities related business for such
specified period and upon such terms as the Hearing Panel may determine;
(d) revocation of the authority of such person to conduct securities related business;
(e) prohibition of the authority of the person to conduct securities related business in any
capacity for any period of time;
(f) such conditions of authority to conduct securities related business as may be considered
appropriate by the Hearing Panel;

NOTICE is further given that the Hearing Panel may, in its discretion, require that the
Respondent pay the whole or any portion of the costs of the proceedings before the Hearing
Panel and any investigation relating thereto.

NOTICE is further given that the Respondent must serve a Reply on Enforcement Counsel and
file a Reply with the Office of the Corporate Secretary within twenty (20) days from the date of
service of this Notice of Hearing.

A Reply shall be served upon Enforcement Counsel at:

Mutual Fund Dealers Association of Canada

121 King Street West, Suite 1000

Toronto, ON M5H 3T9

Attention: Sarah Glickman

Fax: 416-361-9073

Email: sglickman@mfda.ca

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A Reply shall be filed by:

(a) providing four (4) copies of the Reply to the Office of the Corporate Secretary by
personal delivery, mail or courier to:

The Mutual Fund Dealers Association of Canada
121 King Street West, Suite 1000
Toronto, ON M5H 3T9
Attention: Office of the Corporate Secretary; or

(b) transmitting one (1) copy of the Reply to the Office of the Corporate Secretary by fax to
fax number 416-361-9781, provided that the Reply does not exceed 16 pages, inclusive
of the covering page, unless the Office of the Corporate Secretary permits otherwise; or
(c) transmitting one (1) electronic copy of the Reply to the Office of the Corporate Secretary
by e-mail at corporatesecretary@mfda.ca.

A Reply may either:

(i) specifically deny (with a summary of the facts alleged and intended to be relied upon by
the Respondent, and the conclusions drawn by the Respondent based on the alleged facts)
any or all of the facts alleged or the conclusions drawn by the MFDA in the Notice of
Hearing; or
(ii) admit the facts alleged and conclusions drawn by the MFDA in the Notice of Hearing and
plead circumstances in mitigation of any penalty to be assessed.

NOTICE is further given that the Hearing Panel may accept as having been proven any facts
alleged or conclusions drawn by the MFDA in the Notice of Hearing that are not specifically
denied in the Reply.

NOTICE is further given that if the Respondent fails:

(a) to serve and file a Reply; or
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(b) attend at the hearing specified in the Notice of Hearing, notwithstanding that a Reply
may have been served,

the Hearing Panel may proceed with the hearing of the matter on the date and the time and place
set out in the Notice of Hearing (or on any subsequent date, at any time and place), without any
further notice to and in the absence of the Respondent, and the Hearing Panel may accept the
facts alleged or the conclusions drawn by the MFDA in the Notice of Hearing as having been
proven and may impose any of the penalties described in the By-laws.

END.

DM 474184 v1
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