Notice of Hearing

NOTICE is further given that the MFDA alleges the following violations of the By-laws, Rules or Policies of the MFDA:

Allegation #1: On or about February 3, 2014, the Respondent removed a hold placed by the Member on his RRSP Mutual Fund Account in order to complete a transaction, thereby failing observe a high standard of conduct and ethics in the transaction of business, and in violation of the Member’s policies and procedures, contrary to MFDA Rules 2.1.1, 1.1.2 and 2.5.1.

Allegation #2: On March 18, 2014, the Respondent falsified a client signature on an account form, contrary to MFDA Rule 2.1.1.

PARTICULARS

NOTICE is further given that the following is a summary of the facts alleged and intended to be relied upon by the MFDA at the hearing:

Registration History

1. From December 27, 2006 to April 4, 2014, the Respondent was registered in Ontario as a mutual fund salesperson (now known as a Dealing Representative) with BMO Investments Inc. (“BMO”), a Member of the MFDA.
2. The Respondent was also registered in the other provinces and territories throughout Canada until October 2009.
3. BMO terminated the Respondent as a result of the matters described below.
4. The Respondent is no longer registered in the securities industry in any capacity.
5. At all material times, the Respondent conducted business in the Toronto, Ontario area.

Removing Hold from Account

6. At all material times, the Respondent held a line of credit at BMO called a RRSP Readiline Account (the “Readiline Account”). A Readiline account is available to clients who wish to borrow monies for the purpose of making RRSP investment contributions in another BMO account called a BMO RRSP Mutual Fund Account.
7. In accordance with its general practice, BMO placed a hold on the Respondent’s BMO RRSP Mutual Fund Account (the “RRSP Account”), in order to prevent the Respondent from redeeming monies from the RRSP Account while owing money on the Readiline Account.
8. On or about January 30, 2014, the Respondent drew $5,000 on his Readiline Account to purchase an investment in the RRSP Account.
9. On or about January 31, 2014, the Respondent instructed another BMO mutual fund salesperson to redeem $5,000 from the Respondent’s RRSP Account.
10. On or about January 31, 2014, BMO rejected the redemption request due to the hold placed on the RRSP Account, as described above at paragraph 7.
11. On or about February 3, 2014, the Respondent identified that the redemption request had been rejected because of the hold on the RRSP Account.
12. The Respondent then personally removed the hold instituted by BMO from the RRSP Account and, on February 3, 2014, the Respondent instructed the other BMO salesperson to complete the redemption of $5,000 in the Respondent’s RRSP Account for a second time.
13. On or about February 3, 3014, the redemption was processed.
14. By virtue of the foregoing, the Respondent failed to observe a high standard of conduct and ethics in the transaction of business, and in violation of the Member’s policies and procedures, contrary to MFDA Rules 2.1.1, 1.1.2, and 2.5.1.

Falsified Signature

15. On March 18, 2014, the Respondent received instructions from a client to complete a switch in the client’s mutual fund account.
16. In order to complete the transaction, the Respondent falsified the client’s signature on a redemption form and submitted the account form to BMO for processing.
17. By falsifying a client’s signature, the Respondent failed to observe high standards of ethics and conduct and engaged in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.

NOTICE is further given that the Respondent shall be entitled to appear and be heard and be represented by counsel or agent at the hearing and to make submissions, present evidence and call, examine and cross-examine witnesses.

NOTICE is further given that MFDA By-laws provide that if, in the opinion of the Hearing Panel, the Respondent:

• has failed to carry out any agreement with the MFDA;
• has failed to comply with or carry out the provisions of any federal or provincial statute relating to the business of the Member or of any regulation or policy made pursuant thereto;
• has failed to comply with the provisions of any By-law, Rule or Policy of the MFDA;
• has engaged in any business conduct or practice which such Regional Council in its discretion considers unbecoming or not in the public interest; or
• is otherwise not qualified whether by integrity, solvency, training or experience,

the Hearing Panel has the power to impose any one or more of the following penalties:

1. a reprimand;
2. a fine not exceeding the greater of:
   1. $5,000,000.00 per offence; and
   2. an amount equal to three times the profit obtained or loss avoided by such person as a result of committing the violation;
3. suspension of the authority of the person to conduct securities related business for such specified period and upon such terms as the Hearing Panel may determine;
4. revocation of the authority of such person to conduct securities related business;
5. prohibition of the authority of the person to conduct securities related business in any capacity for any period of time;
6. such conditions of authority to conduct securities related business as may be considered appropriate by the Hearing Panel;

NOTICE is further given that the Hearing Panel may, in its discretion, require that the Respondent pay the whole or any portion of the costs of the proceedings before the Hearing Panel and any investigation relating thereto.

NOTICE is further given that the Respondent must serve a Reply on Enforcement Counsel and file a Reply with the Office of the Corporate Secretary within twenty (20) days from the date of service of this Notice of Hearing.

A Reply shall be served upon Enforcement Counsel at:

A Reply shall be filed by:

1. providing four (4) copies of the Reply to the Office of the Corporate Secretary by personal delivery, mail or courier to:
   The Mutual Fund Dealers Association of Canada
   121 King Street West, Suite 1000
   Toronto, ON M5H 3T9
   Attention: Office of the Corporate Secretary; or
2. transmitting one (1) copy of the Reply to the Office of the Corporate Secretary by fax to fax number 416-361-9781, provided that the Reply does not exceed 16 pages, inclusive of the covering page, unless the Office of the Corporate Secretary permits otherwise; or
3. transmitting one (1) electronic copy of the Reply to the Office of the Corporate Secretary by e-mail at [email protected].

A Reply may either:

1. specifically deny (with a summary of the facts alleged and intended to be relied upon by the Respondent, and the conclusions drawn by the Respondent based on the alleged facts) any or all of the facts alleged or the conclusions drawn by the MFDA in the Notice of Hearing; or
2. admit the facts alleged and conclusions drawn by the MFDA in the Notice of Hearing and plead circumstances in mitigation of any penalty to be assessed.

NOTICE is further given that the Hearing Panel may accept as having been proven any facts alleged or conclusions drawn by the MFDA in the Notice of Hearing that are not specifically denied in the Reply.

NOTICE is further given that if the Respondent fails:

1. to serve and file a Reply; or
2. attend at the hearing specified in the Notice of Hearing, notwithstanding that a Reply may have been served,

the Hearing Panel may proceed with the hearing of the matter on the date and the time and place set out in the Notice of Hearing (or on any subsequent date, at any time and place), without any further notice to and in the absence of the Respondent, and the Hearing Panel may accept the facts alleged or the conclusions drawn by the MFDA in the Notice of Hearing as having been proven and may impose any of the penalties described in the By-laws.

END.