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Order

Re:

Order


Order
File No. 201104






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: Gideon Stephen Mills Wiseman



ORDER


WHEREAS on March 24, 2011, the Mutual Fund Dealers Association of Canada (the
“MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA By-law No. 1 in
respect of a disciplinary proceeding commenced against Gideon Stephen Mills Wiseman (the
“Respondent”);

AND WHEREAS the first appearance in this proceeding took place before a hearing
panel of the Pacific Regional Council of the MFDA (the “Hearing Panel”) on May 4, 2011, at
which time the first appearance was adjourned on consent of the parties to resume on May 17,
2011;

AND WHEREAS this proceeding resumed before the Hearing Panel on May 17, 2011,
at which time the Hearing Panel reserved August 29, 2011 for the hearing of this matter on its
merits, and scheduled a further appearance on July 6, 2011 for the parties to address any
procedural matters;

AND WHEREAS this proceeding resumed before the Hearing Panel on July 6, 2011, at
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which time counsel for the Respondent and counsel for MFDA Staff made submissions to the
Hearing Panel with respect to scheduling and other procedural matters, and counsel for the
Respondent advised the Hearing Panel that he would cease representing the Respondent in this
proceeding;

AND WHEREAS on August 29, 2011, the Hearing Panel conducted a hearing of this
matter on its merits as described in the Notice of Hearing;

AND WHEREAS the Respondent did not appear at the hearing of this matter on its
merits;

AND WHEREAS upon reading the affidavit of Ian R. Smith sworn August 25, 2011 and
the written submissions of Staff of the MFDA, and upon hearing the oral submissions of Staff of
the MFDA, the Hearing Panel is of the opinion that the Respondent:

(a)
between August 2002 and July 14, 2006, engaged in personal financial dealings
with clients by:

i) selling, recommending or facilitating the sale of shares in a company, 575954
B.C. Ltd., also known as Granite Mountain Properties Ltd., in which he had a
direct or indirect interest, which company was the developer of a real estate
project known as the “88 Creekside Project” to at least clients JP, GC and TE;
and

ii) borrowing $38,000 from client DD;

thereby giving rise to a conflict or potential conflict of interest between the Respondent
and the clients which the Respondent failed to address by the exercise of responsible
business judgment influenced only by the best interests of the clients, contrary to MFDA
Rules 2.1.4 and 2.1.1;

(b)
between July 2003 and July 14, 2006, engaged in securities related business that

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(c)
interfered with the ability of the Member to conduct a reasonable supervisory
investigation of the Respondent’s activities and failed to observe high standards of ethics
and conduct in the transaction of business, contrary to MFDA Rules 1.1.2 and 2.5.1, and
MFDA Rule 2.1.1, by making misleading statements to the Member, as follows:

i) in April 2003, by representing to the Member that he had never borrowed
money from clients; and

ii) in July 2006, by representing to the Member that his company, G. Wiseman &
Associates Ltd., had not borrowed money from clients; when he knew those to
be incorrect statements at the time and in the circumstances when he made
them; and

(d)
commencing March 19, 2009, failed or refused to provide documents and
information, and to attend an interview requested by the MFDA during the course of an
investigation, contrary to s. 22.1 of MFDA By-law No. 1.

IT IS HEREBY ORDERED THAT:

1)
The Respondent shall be permanently prohibited from conducting securities related
business while in the employ of, or associated with, any MFDA Member, pursuant to s. 24.1.1(e)
of MFDA By-law No. 1;

2)
The Respondent shall pay a fine in the amount of $150,000, pursuant to s. 24.1.1(b) of
MFDA By-law No. 1;

3)
The Respondent shall pay costs in the amount of $7,500, pursuant to s. 24.2 of MFDA
By-law No. 1; and

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4)
If at any time a non-party to this proceeding requests production of, or access to, any
materials filed in, or the record of, this proceeding, including all exhibits and transcripts, then the
MFDA Corporate Secretary shall not provide copies of, or access to, the requested documents to
the non-party without first redacting from them any and all intimate financial or personal
information, pursuant to Rules 1.8(2) and (5) of the MFDA Rules of Procedure.


DATED this 17th day of October, 2011.

“Roger Kerans”
The Hon. Roger Kerans, Q.C.,

Chair

“Elaine Davison”
Elaine Davison,

Industry Representative

“Martha Kane”
Martha Kane,
Industry Representative

Doc 289490

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