Order

WHEREAS on January 18, 2016, the Mutual Fund Dealers Association of Canada (“MFDA”) issued a Notice of Hearing pursuant to sections 20 and 24 of MFDA Bylaw No. 1 in respect of a disciplinary proceeding commenced against Mervin Evans Visneskie (“Respondent”);

AND WHEREAS the Respondent filed a Reply on March 31, 2016;

AND WHEREAS appearances in this matter proceeded before a Hearing Panel of the Central Regional Council of the MFDA (“Hearing Panel”) on May 9, 2016, November 21, 2016, March 6, 2017, July 11, 2017, and October 24, 2017;

AND WHEREAS on October 30, 2017, the Hearing on the Merits (“Hearing”) proceeded before the Hearing Panel in Toronto, Ontario;

AND WHEREAS the Respondent did not attend at the Hearing, either in person or represented by counsel;

AND WHEREAS at the Hearing, the Hearing Panel considered the evidence and submissions presented by counsel for MFDA Staff with respect to the alleged misconduct including:

• the affidavits and materials filed and marked as exhibits at the Hearing; and
• the oral submissions of Staff of the MFDA at the Hearing;

AND WHEREAS on the basis of the evidence and submissions presented during the Hearing on the Merits, the Hearing Panel found that:

1. commencing in 2002, the Respondent engaged in personal financial dealings with eight clients by requesting and accepting a total of approximately $764,300 from the clients, which he failed to repay in full or otherwise account for, thereby placing his own interests ahead of the clients’ interests and creating a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and Rule 2.1.1; and
2. between 2002 and 2013, the Respondent misled the Members with whom he was registered with respect to his personal financial dealings with eight clients, thereby interfering with the Member’s ability to conduct a reasonable supervisory investigation of the Respondent’s activities and failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1.

AND WHEREAS on December 7, 2017, the Hearing Panel issued its Decision and Reasons regarding misconduct;

AND WHEREAS on May 30, 2018, the penalty phase of the Hearing proceeded before the Hearing Panel in Toronto, Ontario;

AND WHEREAS the Respondent did not attend at the penalty phase of the Hearing, either in person or represented by counsel;

AND WHEREAS at the penalty phase of the Hearing, counsel for MFDA Staff presented evidence and submissions;

AND WHEREAS MFDA Staff filed written materials regarding costs of the proceeding;

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 in association with, any MFDA Member, pursuant to s. 24.1.1(e) of MFDA By-law No. 1;

2. the Respondent shall pay, by December 21, 2019, a fine in the amount of $650,531, pursuant to s. 24.1.1(b) of MFDA By-law No. 1;

3. the amount of the fine payable shall be reduced by any amounts paid by the Respondent by December 21, 2019 to individuals referenced in the Notice of Hearing who have not been repaid or to their representatives or to the beneficiaries of their estates as part of a settlement of a civil action or in satisfaction of any court imposed order (excluding amounts paid for costs or interest) or by other means as restitution for amounts loaned to the Respondent; and

4. the Respondent shall pay costs to the MFDA in the amount of $15,000 pursuant to s. 24.2 of MFDA By-law No. 1.