MFDA announces disciplinary proceeding in respect of Scott Devries

TORONTO, Nov. 3, 2011 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Scott Devries (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between about August 2002 and October 2009, the Respondent engaged in personal financial dealings with clients by borrowing $433,350 from 8 clients, either personally or through his businesses Devries Financial Group Inc. or Frontex Reporting Systems Inc. ("Frontex"), thereby giving rise to conflicts or potential conflicts of interest between the Respondent and the clients that the Respondent failed to ensure were addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #2: Between about September 2004 and December 2009, the Respondent engaged in securities related business that was not carried on for the account of the Member and through the facilities of the Member by selling shares and convertible debentures of Frontex to 15 clients and other individuals, contrary to MFDA Rule 1.1.1.

Allegation #3: Between about September 2004 and December 2009, the Respondent engaged in personal financial dealings with 9 clients by selling shares and convertible debentures of Frontex to the clients, thereby giving rise to conflicts or potential conflicts of interest between the Respondent and the clients that the Respondent failed to ensure were addressed by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4 and 2.1.1.

Allegation #4: Commencing in December 2010, the Respondent failed to provide information and documentation requested by the MFDA during the course of an investigation, contrary to section 22.1 of MFDA By-law No. 1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on November 28, 2011 at 10:00 a.m. (Eastern) in the MFDA Hearing Room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the appearance is to set a date for a disciplinary hearing and to address any other procedural matters. The appearance will be open to the public, except as may be required for the protection of confidential matters.

A copy of the Notice of Hearing is available on the MFDA website at www.mfda.ca.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 130 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.


SOURCE Mutual Fund Dealers Association of Canada

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or sdevlin@mfda.ca


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