MFDA Hearing Panel approves two Settlement Agreements

TORONTO, Dec. 7, 2015 /CNW/ - Today a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following two (2) separate proceedings, the particulars of which are:

Karen Grenke

A settlement hearing in the matter of Karen Grenke ("Grenke") was held on December 7, 2015, at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Grenke, as a consequence of which Grenke:



(i)

has paid a fine in the amount of $7,500;



(ii)

has paid costs in the amount of $2,500;



(iii)

shall be prohibited from conducting securities related business in any capacity while in the employ or associated with any Member of the MFDA for a period of one year from the date of the settlement hearing; and



(iv)

shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Grenke admitted that:


 (i)

TTTBetween September 2007 and April 2014, she obtained, possessed, and in some instances, used to process transactions, 86 pre-signed account forms with respect of 54 clients, contrary to MFDA Rule 2.1.1;


(ii)

|Between September 2007 and April 2014, she falsified, and in all but one instance, used to process transactions, 101 account forms with respect of 70 clients, contrary to MFDA Rule 2.1.1; and


(iii)

On February 12, 2012 and on March 22, 2013, she mislead the Member in her responses to various questions contained in the Member's Annual Compliance Declaration, contrary to MFDA Rule 2.1.1.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Grenke carried on business in the Timmins, Ontario area.

Howard Leung

A settlement hearing in the matter of Howard Leung ("Leung") was held on December 7, 2015, at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Leung, as a consequence of which Leung:

(i)

has paid a fine in the amount of $2,500;

(ii)

has paid costs in the amount of $2,500; and

(iii)

shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Leung admitted that on June 28, 2014, he falsified the signature of a client on a redemption form.

A copy of the Settlement Agreement is available on the MFDA website at www.mfda.ca. During the period described in the Settlement Agreement, Leung carried on business in the Richmond Hill, Ontario area.

The Hearing Panel advised that it will issue its written reasons for both proceedings in due course.

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, ctoth@mfda.ca

RELATED LINKS
http://www.mfda.ca

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