Notice of Hearing

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. The Respondent became registered in the securities industry in 2009.
2. Between December 20, 2013 and January 8, 2016, the Respondent was registered in British Columbia as a mutual fund salesperson (now known as a Dealing Representative) with TD Investment Services Inc. (“TD”), a Member of the MFDA.
3. Between June 10, 2010 and October 12, 2010, the Respondent was registered in British Columbia as a mutual fund salesperson with Investia Financial Services Inc., a Member of the MFDA.
4. Between September 28, 2009 and April 23, 2010, the Respondent was registered in British Columbia as a mutual fund salesperson with Investor Group Financial Services Inc., a Member of the MFDA.
5. The Respondent is not currently registered in the securities industry in any capacity.
6. At all material times, the Respondent carried on business in the Surrey, British Columbia area.

Allegations #1 and #2 – Falsified Client Signatures and Failed to use Due Diligence to Learn Essential Facts Relative to Clients

7. At all material times, TD’s policies and procedures prohibited its Approved Persons from falsifying client signatures.
8. On December 18, 2015, the Respondent’s branch manager asked the Respondent to contact three clients to have them attend the branch in order to update their client account information, in preparation for a branch audit.
9. The Respondent was required to meet with the clients in order to discuss their Know-Your-Client (“KYC”) information, complete the forms with the clients, and obtain their signatures on the forms.
10. Rather than meet with the clients as directed by the branch manager, on December 19, 2015, the Respondent falsified the signatures of the three clients on a total of two KYC forms (the “KYC forms”) and on one account form.
11. The Respondent used previous KYC information on file for two of the clients when completing the KYC forms and did not contact the clients to determine if the information was accurate.
12. By virtue of the foregoing, the Respondent:
    1. falsified the signatures of three clients on two KYC forms and on one account form, contrary to MFDA Rule 2.1.1; and
    2. failed to use due diligence to learn the essential facts of the client when he completed the information on the KYC forms without having met or discussed the information with the clients, contrary to MFDA Rule 2.2.1 and 2.1.1.

Allegation #3 – False Representations to the Member

13. On December 19, 2015, the Respondent advised his branch manager that he had contacted the clients and obtained their signatures on the account forms described above at paragraph 10, when the Respondent knew this to be untrue.
14. On December 21, 2015, the Respondent’s branch manager became aware that the Respondent had submitted a KYC form for the wrong RESP account for one of the clients. The branch manager subsequently contacted the client, who informed him that he and one of the other clients (his spouse) had not met with the Respondent to update their account information.
15. On December 21, 2015, the branch manager advised the Respondent that he had been advised that two of the clients had not met with the Respondent to update their KYC information. The Respondent then admitted to the branch manager that he falsified the signatures of the three clients described above at paragraph 10.
16. By virtue of the foregoing, the Respondent falsely represented to his branch manager that he had contacted clients and obtained their signatures on account forms, when he knew this to be incorrect, 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 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 Respondents 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:

Mutual Fund Dealers Association of Canada
650 West Georgia Street
Suite 1220
Vancouver, B.C. V6B 4N9
Attention: Christopher Corsetti
Fax: 604-683-6577
Email: [email protected]

A Reply shall be filed by:

1. providing 4 copies of the Reply to the Director of Regional Councils by personal delivery, mail or courier to:
   1. 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 1 copy of the Reply to the Director of Regional Councils by fax to fax number 416-361-9781, provided that the Reply does not exceed 16 pages, inclusive of the covering page, unless the Director of Regional Councils permits otherwise; or
3. transmitting 1 electronic copy of the Reply to the Director of Regional Councils 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.