MFDA announces disciplinary proceeding in respect of Henry Wen-Hwei Huang

TORONTO, April 27, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Henry Wen-Hwei Huang (the "Respondent"). In its Notice of Hearing dated April 7, 2016, Staff of the MFDA alleges that the Respondent engaged in the following conduct contrary to the By-laws, Rules and/or Policies of the MFDA:

Allegation #1: Between September 2, 2011 and October 11, 2012, the Respondent falsified the identity of the account holder on void cheques and changed the address of the three clients on record with the fund company to his own personal address, in order to facilitate the deposit of the proceeds of the redemptions from the investment accounts of the three clients into the Respondent's bank account, contrary to MFDA Rules 2.1.1 and 2.1.4.

Allegation #2: In February 2007, the Respondent falsified Know-Your-Client ("KYC") information on a loan application which the Respondent submitted to a lender to facilitate the implementation of a leverage investment strategy he recommended to client XLK, thereby failing to observe high standards of ethics and conduct in the transaction of business and engaging in conduct detrimental to the public interest, contrary to MFDA Rules 2.1.1 and 2.1.4.

Allegation #3: In October 2012, without the knowledge or authorization of clients XLK and MW, the Respondent:



(a)   

falsified the signatures of clients XLK and MW on KYC information update forms, risk disclosure acknowledgement forms and trade instruction forms;



(b)  

recorded false KYC information for the account of client MW; and



(c)   

processed unauthorized trades in the accounts of clients MW and XLK;

 

contrary to MFDA Rules 2.2.1, 2.1.4 and 2.1.1.

Allegation #4: On November 19, 2014, the Respondent provided false answers during an interview with Staff in the course of an investigation into his conduct, thereby failing to cooperate with the MFDA's investigation, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.

The first appearance in this proceeding will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on June 10, 2016 at 10:00 a.m. (Eastern), or as soon thereafter as the appearance can be held, to schedule a date for the commencement of the hearing on the merits 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. During the period described in the Notice of Hearing, the Respondent carried on business in Toronto, Ontario.

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 83,000 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.

SOURCE Mutual Fund Dealers Association of Canada

For further information: Charles Toth, Director, Litigation, 416-943-4619, ctoth@mfda.ca

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