July 21, 2022 (Toronto, Ontario) – A settlement hearing in the matter of Jeong Heon (Abraham) Shin (the “Respondent”) was held electronically by videoconference on July 20, 2022 in Toronto, Ontario before a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”).
The Hearing Panel accepted the settlement agreement dated April 28, 2022 (the “Settlement Agreement”), between Staff of the MFDA and the Respondent as a consequence of which the following sanctions were imposed on the Respondent:
- a permanent prohibition from conducting securities related business while in the employ of or in association with a Member of the MFDA;
- a fine in the amount of $50,000; and
- costs in the amount of $5,000.
In the Settlement Agreement, the Respondent admitted that:
- between March 2020 and August 2020, he misappropriated $114,481 from two elderly clients, contrary to MFDA Rule 2.1.1;
- between March 2020 and November 2020, he engaged in personal financial dealings with two clients by soliciting and accepting $200,000 from the clients, which gave rise to a conflict or potential conflict of interest that he failed to disclose to the Member or otherwise address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to the Member’s policies and procedures and MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1; and
- on or around March 23, 2020, he processed a switch of $330,081 in a client’s account without the client’s authorization, contrary to the Member’s policies and procedures and MFDA Rules 2.1.1, 1.1.2, and 2.5.1.
Prior to entering into the Settlement Agreement, the Respondent repaid from his own resources all the monies that he misappropriated, borrowed, or obtained from the clients, except for $10,000 which was forgiven by a client that is a relative of the Respondent.
A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, the Respondent conducted business in the Toronto, 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 80,000 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.