TORONTO, Dec. 14, 2015 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") has commenced disciplinary proceedings in respect of Hyun Chul (Brian) Lee (the "Respondent"). In its Notice of Hearing dated November 9, 2015, 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 February 2012 and February 2013, the Respondent engaged in personal financial dealings with clients by, directly or indirectly:
(a) borrowing $60,000 from the clients BF and EF, which he invested in a car wash business he owned and operated and then failed to repay in accordance with the terms of the loan;
(b) recommending and facilitating an investment of $17,999 by client LA which the Respondent invested in a wholesale food delivery business he owned and operated and then failed to repay;
thereby placing his own interests ahead of the clients' interests and creating a conflict or potential conflict of interest which the Respondent failed to address 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 February 2012 and February 2013, the Respondent had and continued in other gainful occupations relating to a car wash and wholesale food delivery businesses he owned and operated, which were not disclosed to and approved by the Member, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)) and 2.1.1.
Allegation #3: Between February 15, 2013 and January 2, 2015, the Respondent misled the MFDA and the Member during investigations into his personal financial dealings with clients when he failed to disclose that he had borrowed monies from clients BF and EF, and recommended and facilitated an investment by client LA in a business he owned and operated, thereby failing to cooperate with Staff's investigation, interfering with the Member's ability to conduct a reasonable supervisory investigation of the Respondent's activities and failing to observe high standards of ethics and conduct in the transaction of business, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.
The first appearance in this proceeding will be held by teleconference before a Hearing Panel of the MFDA's Pacific Regional Council on January 7, 2016, at 10:00 a.m. (Pacific), or as soon thereafter as the appearance can be held, in order to schedule a date for the commencement of the hearing on the merits and to address any other procedural matters. The first appearance will take place in the hearing room at the MFDA offices, located at 650 West Georgia Street, Suite 1220, Vancouver, British Columbia, and will be open to the public, except as may be required for the protection of confidential matters. The hearing on the merits will take place in Vancouver, British Columbia at a time and venue to be announced.
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 Surrey and Lac La Hache, British Columbia.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 102 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, firstname.lastname@example.org; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, email@example.com