Order

WHEREAS on May 5, 2020, 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 David Len Carleton Richard (the “Respondent”);

AND WHEREAS on August 11, 2020, the first appearance in this proceeding was held by videoconference before one public representative of a Regional Council acting on behalf of a hearing panel of the Central Regional Council of the MFDA (the “Hearing Panel”), pursuant to section 19.13(b) of MFDA By-law No. 1;

AND WHEREAS the Respondent did not attend the first appearance, despite being properly served with the Notice of Hearing;

AND WHEREAS on March 16, 2021, the Hearing Panel conducted a hearing on the merits of this matter (the “Hearing”);

AND WHEREAS the Respondent did not file a Reply in this proceeding; did not attend the Hearing; and was not represented by counsel at the Hearing;

AND WHEREAS the Hearing Panel considered the evidence and submissions presented by Staff of the MFDA at the Hearing;

AND WHEREAS the Hearing Panel found that:

1. Between 2015 and 2018, the Respondent misappropriated or failed to account for approximately $98,550 that he received from two clients, thereby failing to deal fairly, honestly and in good faith with the clients, failing to observe high standards of ethics and conduct in the transaction of business, and engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1; and
2. In about 2017, the Respondent produced a fabricated account statement which concealed that he had misappropriated or failed to invest a client’s monies, thereby failing to observe high standards of ethics and conduct in the transaction of business, and engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1.

IT IS HEREBY ORDERED THAT:

1. The Respondent is permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member, pursuant to section 24.1.1(e) of MFDA By-law No. 1;
2. The Respondent shall pay a total fine in the amount of $275,000, pursuant to section 24.1.1(b) of MFDA By-law No. 1, consisting of the following:
   1. a fine in the amount of $200,000 in respect of allegation #1 in the Notice of Hearing;
   2. a fine in the amount of $75,000 in respect of allegation #2 in the Notice of Hearing;
3. The Respondent shall pay costs of this proceeding in the amount of $11,612.50, pursuant to section 24.2 of MFDA By-law No. 1.