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MFDA SETTLEMENT AGREEMENT

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File No. 2017115

IN THE MATTER OF A SETTLEMENT HEARING PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Saied Jamshidi

SETTLEMENT AGREEMENT

I. INTRODUCTION

  1. Staff of the Mutual Fund Dealers Association of Canada (“Staff”) and Saied Jamshidi (“Respondent”), consent and agree to settlement of this matter by way of this agreement (“Settlement Agreement”).
  1. Staff conducted an investigation of the Respondent’s activities which disclosed activity for which the Respondent could be penalized on the exercise of the discretion of the Hearing Panel pursuant to s. 24.1 of By-law No. 1.

II. JOINT SETTLEMENT RECOMMENDATION

  1. Staff and the Respondent jointly recommend that the Hearing Panel accept the Settlement Agreement.
  1. The Respondent admits to the following violations of the By-laws, Rules or Policies of the MFDA:
    1. on December 3, 2015, the Respondent signed the signature of 1 client on 1 account form and submitted the form to the Member for processing, contrary to MFDA Rule 2.1.1; and
    2. on December 4, 2015, the Respondent falsely represented to his assistant branch manager that a client had attended at the branch and signed an account form, contrary to MFDA Rule 2.1.1.
  1. Staff and the Respondent agree and consent to the following terms of settlement:
    1. the Respondent shall pay a fine of $5,000 pursuant to Section 24.1.1(b) of MFDA Bylaw No. 1;
    2. the Respondent shall pay costs in the amount of $2,500, pursuant to section 24.2 of Bylaw No. 1;
    3. the Respondent shall in the future comply with MFDA Rule 2.1.1; and
    4. the Respondent will attend in person, on the date set for the Settlement Hearing.
  1. Staff and the Respondent agree to the settlement on the basis of the facts set out in Part III herein and consent to the making of an Order in the form attached as Schedule “A”.

III. AGREED FACTS

Registration History

  1. The Respondent has been registered in the securities industry since 2001.
  1. Between January 5, 2011 and February 16, 2016, the Respondent was registered in British Columbia as a dealing representative with BMO Investments Inc. (“BMO”), a Member of the MFDA.
  1. On February 16, 2016, the Respondent was terminated by BMO for events described herein.
  1. The Respondent is not currently registered in the securities industry in any capacity.
  1. At all material times the Respondent carried on business in the West Vancouver, British Columbia area.

The Respondent Signed the Signature of a Client

  1. At all material times, BMO prohibited its Approved Persons from signing client signatures.
  1. At all material times, client X was a client of BMO whose accounts were serviced by the Respondent.
  1. In or about December 2015, client X contacted the Respondent and requested that he process a redemption from (the “Redemption Form”) her account. On December 3, 2015, client X was scheduled to attend the branch in order to sign the Redemption Form, but was unable to attend the branch, and instead called the general line at the Respondent’s branch to arrange for the Redemption Form to be faxed to her for signing.
  1. On December 3, 2015, in response to client X’s request, the Respondent’s assistant branch manager (“ABM”) faxed the Redemption Form to client X to sign and return to the branch.
  1. The Respondent was unaware that client X had called the branch and requested the Redemption Form to be sent to her for signing. The Respondent states that when client X did not attend the branch as scheduled, he attempted to contact her, but was unsuccessful.
  1. On December 3, 2015, the Respondent signed the signature of client X on the Redemption Form and submitted it to BMO for processing.

False Representation to the Member

  1. On December 4, 2015, the Respondent’s ABM was conducting daily trade review and she identified the Redemption Form, containing client X’s original signature. The Respondent’s ABM then called client X and left a voice message inquiring about the signed Redemption Form. The ABM then emailed the Respondent to inquire whether client X attended the branch to sign the Redemption Form.
  1. On December 4, 2015, client X advised the ABM that she did not attend the branch to sign the Redemption Form.
  1. On December 4, 2015, the Respondent emailed the ABM and falsely advised that client X attended the branch and signed the Redemption Form.
  1. On December 7, 2015, the following business day, the Respondent approached his branch manager and advised that he had signed clients X’s signature on the Redemption Form.

Additional Factors

  1. The Respondent has not previously been the subject of MFDA disciplinary proceeding.
  1. There is no evidence that:
    1. the Respondent processed any trades without the knowledge or authorization of his client;
    2. clients suffered any financial harm;
    3. the Respondent received any financial benefit from engaging in the misconduct beyond the commissions or fees to which he would have been ordinarily entitled had the transactions in the clients’ accounts been carried out in the proper manner; and
    4. any clients have complained about the Respondent’s conduct.

IV. ADDITIONAL TERMS OF SETTLEMENT

  1. This settlement is agreed upon in accordance with section 24.4 of MFDA By-law No. 1 and Rules 14 and 15 of the MFDA Rules of Procedure.
  1. The Settlement Agreement is subject to acceptance by the Hearing Panel which shall be sought at a hearing (the “Settlement Hearing”). At, or following the conclusion of, the Settlement Hearing, the Hearing Panel may either accept or reject the Settlement Agreement. MFDA Settlement Hearings are typically held in the absence of the public pursuant to section 20.5 of MFDA By-law No. 1 and Rule 15.2(2) of the MFDA Rules of Procedure. If the Hearing Panel accepts the Settlement Agreement, then the proceeding will become open to the public and a copy of the decision of the Hearing Panel and the Settlement Agreement will be made available at www.mfda.ca.
  1. The Settlement Agreement shall become effective and binding upon the Respondent and Staff as of the date of its acceptance by the Hearing Panel. Unless otherwise stated, any monetary penalties and costs imposed upon the Respondent are payable immediately, and any suspensions, revocations, prohibitions, conditions or other terms of the Settlement Agreement shall commence, upon the effective date of the Settlement Agreement.
  1. Staff and the Respondent agree that if this Settlement Agreement is accepted by the Hearing Panel:
    1. the Settlement Agreement will constitute the entirety of the evidence to be submitted respecting the Respondent in this matter;
    2. the Respondent waives any rights to a full hearing, a review hearing before the Board of Directors of the MFDA or any securities commission with jurisdiction in the matter under its enabling legislation, or a judicial review or appeal of the matter before any court of competent jurisdiction;
    3. Staff will not initiate any proceeding under the By-laws of the MFDA against the Respondent in respect of the facts and contraventions described in this Settlement Agreement. Nothing in this Settlement Agreement precludes Staff from investigating or initiating proceedings in respect of any facts and contraventions that are not set out in this Settlement Agreement. Furthermore, nothing in this Settlement Agreement shall relieve the Respondent from fulfilling any continuing regulatory obligations;
    4. the Respondent shall be deemed to have been penalized by the Hearing Panel pursuant to s. 24.1.2 of By-law No. 1 for the purpose of giving notice to the public thereof in accordance with s. 24.5 of By-law No. 1; and
    5. neither Staff nor the Respondent will make any public statement inconsistent with this Settlement Agreement. Nothing in this section is intended to restrict the Respondent from making full answer and defence to any civil or other proceedings against the Respondent.
  1. If, for any reason, this Settlement Agreement is not accepted by the Hearing Panel, each of Staff and the Respondent will be entitled to any available proceedings, remedies and challenges, including proceeding to a disciplinary hearing pursuant to sections 20 and 24 of By-law No. 1, unaffected by the Settlement Agreement or the settlement negotiations.
  1. Staff and the Respondent agree that the terms of the Settlement Agreement, including the attached Schedule “A”, will be released to the public only if and when the Settlement Agreement is accepted by the Hearing Panel.
  1. The Settlement Agreement may be signed in one or more counterparts which together shall constitute a binding agreement. A facsimile copy of any signature shall be effective as an original signature.

DATED: Nov 16, 2017

"JN"

Witness – Signature


JN

Witness – Print Name

“Saied Jamshidi”

Saied Jamshidi


 

“Shaun Devlin ”

Staff of the MFDA
Per: Shaun Devlin
Senior Vice-President,
Member Regulation – Enforcement


Schedule “A”

Order
File No. 2017115

IN THE MATTER OF A SETTLEMENT HEARING
PURSUANT TO SECTION 24.4 OF BY-LAW NO. 1 OF
THE MUTUAL FUND DEALERS ASSOCIATION OF CANADA

Re: Saied Jamshidi

ORDER

WHEREAS on [date], the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Settlement Hearing pursuant to section 24.4 of By-law No. 1 in respect of Saied Jamshidi (the “Respondent”);

AND WHEREAS the Respondent entered into a settlement agreement with Staff of the MFDA, dated [date] (the “Settlement Agreement”), in which the Respondent agreed to a proposed settlement of matters for which the Respondent could be disciplined pursuant to ss. 20 and 24.1 of By-law No. 1;

AND WHEREAS the Hearing Panel is of the opinion that the Respondent,

  1. on December 3, 2015, signed the signature of 1 client on 1 account form and submitted the form for to the Member for processing, contrary to MFDA Rule 2.1.1; and
  2. on December 4, 2015, falsely represented to his assistant branch manager that a client had attended at the branch and signed an account form, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT the Settlement Agreement is accepted, as a consequence of which:

  1. the Respondent shall pay a fine of $5,000 pursuant to Section 24.1.1(b) of MFDA Bylaw No. 1;
  1. the Respondent shall pay costs in the amount of $2,500, pursuant to section 24.2 of Bylaw No. 1; and
  1. if at any time a non-party to this proceeding, with the exception of the bodies set out in section 23 of MFDA By-law No. 1, requests production of or access to exhibits in this proceeding that contain personal information as defined by the MFDA Privacy Policy, then the MFDA Corporate Secretary shall not provide copies of or access to the requested exhibits to the non-party without first redacting from them any and all personal information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.

DATED this [day] day of [month], 20[  ].

Per:      __________________________
[Name of Public Representative], Chair

Per:      _________________________
[Name of Industry Representative]

Per:      _________________________
[Name of Industry Representative]