News Release

For immediate release
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For further information, please contact:

Charles Toth

Vice President, Enforcement

(416) 943-4619

ctoth@mfda.ca

MFDA Hearing Panel approves five settlement agreements

December 3, 2018 (Toronto, Ontario) – On November 29, 2018, a three-person Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (“MFDA”) heard the following five settlement proceedings, the particulars of which are:

Graham Coltart

A hearing in the matter of Graham Allan Coltart (“Coltart”) was held on November 29, 2018 at which the Hearing Panel approved the settlement agreement dated July 23, 2018 (“Settlement Agreement”) between Staff of the MFDA and Coltart, as a consequence of which the following sanctions were imposed:

  • a prohibition from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of six months;
  • costs in the amount of $2,500; and
  • shall in future comply with MFDA Rules 2.1.1, 1.1.2, 2.5.1, 2.1.4, 2.1.1, and MFDA Policy No. 3.

In the Settlement Agreement, Coltart admitted that:

  1. between June 2011 and September 2016, he falsified, and used to process transactions, 12 account forms in respect of 8 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
  2. between May 2011 and September 2016, he obtained, possessed, and in some instances, used to process transactions, 41 pre-signed account forms in respect of 11 clients, contrary to MFDA Rule 2.1.1; and
  3. in or about April 2016, he, without the prior approval of the Member, directly reimbursed a client for deferred sales charge fees that the client incurred, thereby engaging in personal financial dealings with a client, contrary to the Member’s policies and procedures and MFDA Rules 1.1.2, 2.5.1, 2.1.4, 2.1.1, and MFDA Policy No. 3.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Coltart carried on business in the London, Ontario area.

Issac Muhima

A hearing in the matter of Isaac Muhima (“Muhima”) was held on November 29, 2018 at which the Hearing Panel approved the settlement agreement dated August 2, 2018 (“Settlement Agreement”) between Staff of the MFDA and Muhima, as a consequence of which the following sanctions were imposed:

  • a prohibition from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of one year;
  • a fine in the amount of $3,500; and
  • shall in future comply with MFDA Rules 2.2.1 and 2.1.1.

In the Settlement Agreement, Muhima admitted that:

  1. on or about June 20, 2016, he signed the signature of a client on an account form, and submitted the account form for processing, contrary to MFDA Rule 2.1.1;
  2. on or about June 20, 2016, he failed to comply with a Member directive to contact a client to review the suitability of the holdings in a client account, contrary to MFDA Rule 2.1.1; and
  3. on or about June 20, 2016, he failed to use due diligence to learn the essential facts of the client when he completed Know-Your-Client information without having met or discussed the information with the client, contrary to MFDA Rules 2.2.1 and 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Muhima carried on business in the Kingston, Ontario area.

Nicholas Del Plavignano

A hearing in the matter of Nicholas Del Plavignano (“Del Plavignano”) was held on November 29, 2018 at which the Hearing Panel approved the settlement agreement dated October 11, 2018 (“Settlement Agreement”) between Staff of the MFDA and Del Plavignano, as a consequence of which the following sanctions were imposed:

  • a prohibition from conducting securities related business in any capacity while in the employ of or associated with a Member of the MFDA for a period of eighteen months;
  • a fine in the amount of $5,000;
  • costs in the amount of $2,500; and
  • shall in future comply with MFDA Rules 2.2.1 and 2.1.1.

In the Settlement Agreement, Del Plavignano admitted that:

  1. on March 29, 2016 and March 30, 2016, he processed a total of two transactions without the client’s authorization, contrary to MFDA Rule 2.1.1;
  2. on April 4, 2016, he failed to use due diligence to learn the essential facts of a client, when he completed the client’s Know-Your-Client information on an account form without having met or discussed the information with the client, contrary to MFDA Rules 2.2.1 and 2.1.1;
  3. on April 4, 2016, he failed to comply with two Member directives to contact a client to review the client’s Know-Your Client information and the suitability of investments in the client’s account, contrary to MFDA Rule 2.1.1; and
  4. on April 4, 2016, he falsely represented to the Member that the client reviewed and approved the risk tolerance for the client’s account, contrary to MFDA Rule 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Del Plavignano carried on business in the Woodbridge, Ontario area.

Johnson Tit Ping Fu

A hearing in the matter of Johnson Tit Ping Fu (“Fu”) was held on November 29, 2018 at which the Hearing Panel approved the settlement agreement dated September 12, 2018 (“Settlement Agreement”) between Staff of the MFDA and Fu, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $12,500;
  • costs in the amount of $2,500; and
  • shall in future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Fu admitted that:

  1. between December 2003 and September 2015, he obtained, possessed and, in some instances, used to process transactions, 15 pre-signed account forms in respect of ten clients, contrary to MFDA Rule 2.1.1;
  2. between December 2003 and September 2015, he altered 17 account forms in respect of ten clients by altering information on the account forms without having the clients initial the alterations, contrary to MFDA Rule 2.1.1; and
  3. on or about February 24, 2008, he photocopied a completed account form signed by a client, used liquid correction fluid to change the client instructions on the photocopied form, and submitted this account form for processing, contrary to MFDA Rule 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Fu carried on business in the Richmond Hill, Ontario area.

Diego Gonzalez Borrero

A hearing in the matter of Diego Gonzalez Borrero (“Borrero”) was held on November 29, 2018 at which the Hearing Panel approved the settlement agreement dated September 11, 2018 (“Settlement Agreement”) between Staff of the MFDA and Borrero, as a consequence of which the following sanctions were imposed:

  • a fine in the amount of $18,000;
  • costs in the amount of $2,500; and
  • shall in future comply with MFDA Rules 2.1.1 and 2.3.1.

In the Settlement Agreement, Borrero admitted that:

  1. between January 2013 and September 2016, he altered, and used to process transactions, 42 account forms in respect of 34 clients by altering information on the account forms without having the client initial the alterations, contrary to MFDA Rule 2.1.1;
  2. between January 2013 and September 2016, he obtained, possessed, and in some instances, used to process transactions, 32 pre-signed account forms in respect of 20 clients, contrary to MFDA Rule 2.1.1; and
  3. on or about February 8, 2017, he processed two trades in relation to two clients based on the instructions of someone other than the client, contrary to MFDA Rules 2.3.1 and 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Borrero carried on business in the Newmarket, 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.