Order

WHEREAS on May 23, 2018, the Mutual Fund Dealers Association of Canada (“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 Neil Kumar (the “Respondent”);

AND WHEREAS on August 14, 2018, the first appearance in this proceeding was held by teleconference 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, although properly served with the Notice of Hearing;

AND WHEREAS at the first appearance, the Hearing Panel ordered that the hearing on the merits shall take place on February 7, 2019;

AND WHEREAS on February 7, 2019, the Respondent requested an adjournment of the hearing on the merits, which was opposed by Staff of the MFDA;

AND WHEREAS the Hearing Panel granted the adjournment and ordered that an additional appearance take place by teleconference on February 7, 2019;

AND WHEREAS at the additional appearance, the Hearing Panel ordered, among other things, that the hearing on the merits shall take place on March 18 and 19, 2019;

AND WHEREAS the Respondent did not serve or file a Reply to the Notice of Hearing;

AND WHEREAS on March 18, 2019, the Hearing Panel conducted the hearing on the merits;

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

AND WHEREAS the Hearing Panel found that the Respondent:

1. between July 2015 and March 2016:
   1. submitted a loan application for himself which contained false information about his assets and liabilities, and also contained a fabricated account statement;
   2. submitted a line of credit application for himself which contained false information about his assets and liabilities;
   3. arranged for two individuals to submit line of credit applications which he knew, or ought to have known, contained false information about their assets, and also contained fabricated account statements; and
   4. processed a loan application for a client which he knew, or ought to have known, contained a fabricated account statement;

   thereby failing to observe high standards of ethics and conduct in the transaction of business, or engaging in conduct which is unbecoming and detrimental to the public interest, contrary to MFDA Rule 2.1.1; and

2. commencing in August 2016, failed to cooperate with MFDA Staff during the course of investigations into his conduct and failed to facilitate access to documents and other records requested by Staff, contrary to sections 22.1 and 22.2 of MFDA By-law No. 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 s. 24.1.1(e) of MFDA By-law No. 1
2. the Respondent shall pay a fine in the amount of $250,000, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;
3. the Respondent shall pay costs in the amount of $10,000, pursuant to s. 24.2 of MFDA By-law No. 1; and
4. 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.