WHEREAS on December 14, 2018, the Mutual Fund Dealers Association of Canada (“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 Blair Harcourt Addison (“Respondent”);
AND WHEREAS the Notice of Hearing was served by Staff of the MFDA (“Staff”) on the Respondent on December 21, 2018, by sending a true copy by registered and ordinary mail to the Respondent’s last known address as recorded in the MFDA’s records, as appears from the affidavit of service of Prianka Kalraiya sworn on January 7, 2019;
AND WHEREAS Staff identified a new home address for the Respondent following the service of the Notice of Hearing by registered and ordinary mail;
AND WHEREAS the Notice of Hearing was served personally on the Respondent on January 22, 2019, as appears from the affidavit of service of Carlyle Murray sworn January 23, 2019;
AND WHEREAS on January 29, 2019, the first appearance in this proceeding was held before a public representative of the Central Regional Council of the MFDA (the “Chair of the Hearing Panel”);
AND WHEREAS the Respondent did not attend or participate at the first appearance held on January 29, 2019;
AND WHEREAS the Chair of the Hearing Panel validated the service of the Notice of Hearing on the Respondent, pursuant to section 4.8 of the MFDA Rules of Procedure;
AND WHEREAS, at the request of Staff, the Chair of the Hearing Panel adjourned the first appearance so the Respondent could be provided the 30 days’ notice stipulated in Rule 7.1 of the MFDA Rules of Procedure from the date of personal service;
AND WHEREAS the first appearance was resumed on February 27, 2019;
AND WHEREAS the Respondent was served with a letter advising him of the adjournment of the first appearance to February 27, 2019, as appears from the affidavit of service of Terri Ash, sworn February 5, 2019;
AND WHEREAS the Respondent did not attend or participate at the continuation of the first appearance held on February 27, 2019;
AND WHEREAS during the continuation of the first appearance, following submissions made by Staff, the Chair of the Hearing Panel scheduled the hearing on the merits (the “Hearing”) in this matter to take place on June 5, 2019 at 10:00 a.m., or as soon thereafter as the hearing could be held, in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario;
AND WHEREAS on March 7, 2019, Staff sent notice of the date of the Hearing to the Respondent;
AND WHEREAS on June 5, 2019, the Hearing of this matter was held before a hearing panel of the Central Regional Council (the “Hearing Panel”);
AND WHEREAS the Respondent did not file a Reply in this proceeding; did not attend the Hearing; was not represented by counsel at the Hearing; and did not otherwise participate in the Hearing;
AND WHEREAS the Hearing Panel considered the evidence filed by, and the submissions of, Staff;
AND WHEREAS the Hearing Panel finds that:
- commencing on at least August 1, 2008, the Respondent misappropriated, or failed to account for, approximately $1,320,890 solicited or received from nine clients and six individuals, thereby failing to deal fairly, honestly, and in good faith with clients, failing to observe high standards of ethics and conduct in the transaction of business, and engaging in business conduct or practice that is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1;
- commencing on December 16, 2009, the Respondent borrowed approximately $107,302 from client BH, thereby engaging in personal financial dealings with the client, which gave rise to a conflict or potential conflict of interest that the Respondent failed to disclose to the Member or ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 2.1.1, 2.5.1, and 1.1.2;
- between May 8, 2012 and September 30, 2014, the Respondent misled the Member and MFDA Staff during an investigation into his conduct, contrary to MFDA Rule 2.1.1; and
- commencing September 27, 2017, the Respondent failed to cooperate with MFDA Staff’s investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
IT IS HEREBY ORDERED THAT:
- 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 the MFDA By-law No. 1.
- The Respondent shall pay a fine in the amount of $1,608,192, pursuant to s. 24.1.1(b) of MFDA By-law No.1.
- The Respondent shall pay costs in the amount of $14,700, pursuant to s. 24.2 of MFDA By-law No.1.
Frederick W. ChenowethFrederick W. ChenowethChair
Matthew PrewMatthew PrewIndustry Representative
Cheryl HamiltonCheryl HamiltonIndustry Representative