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Order

Re:

Order


Order
File No. 201222





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: Edgar Mahilum



ORDER


WHEREAS on June 22, 2012, 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
(the “Notice of Hearing”) in respect of a disciplinary proceeding commenced against Edgar
Mahilum (the “Respondent”);

AND WHEREAS on July 10, 2012, the Respondent was properly served with the Notice
of Hearing as appears from the Affidavit of Service of Richard Henderson sworn July 10, 2012;

AND WHEREAS on August 8, 2012, the Respondent filed a Reply to the Notice of
Hearing despite the time for doing so having expired pursuant to Rule 8.1 of the MFDA Rules of
Procedure;

AND WHEREAS on August 9, 2012, the first appearance in this matter (the “First
Appearance”) was held before a panel of the Central Regional Council of the MFDA (the
“Hearing Panel”) and thereafter the hearing of this matter on its merits was scheduled to take
place on October 9, 2012 (the “Hearing on the Merits”);

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AND WHEREAS the Respondent participated in the First Appearance by
teleconference;

AND WHEREAS on October 9, 2012, the Hearing Panel conducted the Hearing on the
Merits;

AND WHEREAS the Respondent did not attend or otherwise participate in the Hearing
on the Merits despite having been properly served with the Notice Hearing, having filed a Reply
and having participated in the First Appearance;

AND WHEREAS in the opinion of the Hearing Panel:

a) between January 1, 2004 and December 31, 2008, the Respondent engaged in
securities related business that was not carried on for the account and through the
facilities of the Member by recommending, selling or facilitating the sale of
investments in the total amount of approximately $375,000 to client PS and
individuals BR and GB outside the Member, contrary to MFDA Rules 1.1.1(a) and
2.1.1;

b) on or about September 5, 2008, the Respondent provided false and misleading
information to the Member in response to the Member’s inquiry regarding a client
redemption, thereby failing to observe high standards of ethics and conduct in the
transaction of business and be of such character and business repute as is consistent
with the standards prescribed by MFDA Rule 2.1.1; and

c) commencing on or about October 19, 2011, the Respondent has failed to provide
documents and information as requested by MFDA Staff during the course of an
investigation, contrary to section 22 of MFDA By-law No. 1.

IT IS HEREBY ORDERED THAT:

1.
The Respondent shall :
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a) be permanently prohibited from conducting securities related business in any capacity
while in the employ of, or in association with, any Member of the MFDA, pursuant to
s. 24.1.1(e) of MFDA By-law No. 1;
b) pay a global fine in the amount of $125,000, pursuant to s. 24.1.1(b) of MFDA By-
law No. 1; and
c) pay costs in the amount of $7,500, pursuant to s. 24.2 of MFDA By-law No. 1.

2.
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, 2012.

“John B. Webber”
The Hon. John B. Webber, Q.C.,

Chair

“Terrence Bourne”
Terrence Bourne,

Industry Representative

“Dena Norton”
Dena Norton,
Industry Representative

Doc 316923
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