MFDA Order

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File No. 201676

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: Anthony Paul Dorzek

Order

ARISING FROM REASONS FOR DECISION DATED MARCH 1, 2017

WHEREAS on September 19, 2016, the Mutual Fund Dealers Association of Canada (the “MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of By-law No. 1 in respect of a disciplinary proceeding commenced against Anthony Paul Dorzek (the “Respondent”);

AND WHEREAS on January 24, 2017 the hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”) conducted a hearing of the matters as described in the Notice of Hearing;

AND WHEREAS the Respondent failed to serve and file a Reply to the Notice of Hearing;

AND WHEREAS no one appeared on behalf of the Respondent and no materials were filed on behalf of the Respondent;

AND WHEREAS counsel for Staff of the MFDA made submissions to the Hearing Panel;

AND WHEREAS in the opinion of the Hearing Panel:

  1. Between 2010 and December 2014, the Respondent solicited and accepted approximately $20,000 from client DB for investment in a real estate business, which investment was not approved by the Member or processed through its facilities, thereby engaging in securities related business outside the Member, contrary to MFDA Rules 1.1.1 and 2.1.1;
  2. Between 2010 and December 2014, the Respondent engaged in personal financial dealings with client DB when he solicited and accepted approximately $20,000 from client DB for investment in a real estate business and co-mingled his own monies with the client’s investment, thereby engaging in conduct giving rise to a conflict of interest which the Respondent failed to disclose and/or ensure was addressed by the exercise of responsible business judgment influenced only the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1;
  3. Commencing in September 2011, the Respondent misappropriated or failed to account for, at least $10,000 of the monies that he solicited and accepted from client DB for investment in a real estate business, thereby failing to deal fairly, honestly and in good faith with client DB and to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rules 2.1.1 and 2.1.4; and
  4. Commencing in or about May 2015, the Respondent failed to cooperate with MFDA Staff during the course of an investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.

IT IS HEREBY ORDERED THAT:

  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;
  1. The Respondent is permanently prohibited from conducting securities related business in any capacity while in the employ of, or in association with, any MFDA Member, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;
  1. The Respondent shall pay a fine in the amount of $75,000 pursuant to s. 24.1.1(b) of MFDA By-law No. 1; and
  1. The Respondent shall pay costs in the amount of $10,000 pursuant to s. 24.2 of MFDA By-law No. 1.

DATED: Mar 1, 2017

"Frederick W. Chenoweth"

Frederick W. Chenoweth

Chair


"Paige A. Wadden"

Paige A. Wadden

Industry Representative


"Joe Yassi"

Joe Yassi

Industry Representative


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