MFDA Hearing Panel makes findings against Ronald Schwartz
May 29, 2018 (Toronto, Ontario) – The Mutual Fund Dealers Association of Canada (“MFDA”) commenced a disciplinary proceeding in respect of Ronald Morrell Schwartz (“Respondent”) by Notice of Hearing dated June 6, 2017.
A disciplinary hearing in this matter was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA’s Central Regional Council. After hearing submissions from Staff of the MFDA, the Hearing Panel found that the three allegations concerning the Respondent set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following findings of misconduct against the Respondent:
Allegation #1: Between January 2009 and June 2015, the Respondent processed a series of unauthorized redemptions and misappropriated at least $69,035 from six clients, contrary to MFDA Rules 2.1.1 and 2.3.1.
Allegation #2: Between January 2009 and June 2015, the Respondent created and distributed fictitious account statements, and misled clients and his Members in response to inquiries regarding his trading activities, in order to conceal that he had processed unauthorized redemptions in client accounts and misappropriated client monies, contrary to MFDA Rules 2.8.2 and 2.1.1.
Allegation #3: Commencing on June 1, 2015, the Respondent failed to cooperate with an investigation by MFDA Staff into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
The Hearing Panel advised that it will issue written reasons for its decision as to misconduct in due course. Submissions with respect to penalty will take place on June 22, 2018, commencing at 10:00 a.m. (Eastern), in the hearing room at the MFDA offices, located at 121 King Street West, Suite 1000, Toronto, Ontario.
A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca. During the period described in the Notice of Hearing, the Respondent conducted business in the Kitchener-Waterloo, Ontario area.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 82,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.