MFDA Hearing Panel completes three proceedings

TORONTO, Sept. 2, 2015 /CNW/ - On August 27, 2015, a three-member Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") heard the following three (3) separate proceedings, the particulars of which are:

David Ewart

A settlement hearing in the matter of David Ewart ("Ewart") was held on August 27, 2015, at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Ewart, as a consequence of which Ewart:

i)                   

has paid a fine in the amount of $15,000;



ii)                  

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



iii)                

shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Ewart admitted that between April 2008 and March 2013, he:

(i)                 

obtained, maintained, and in some instances, used to process trades, 47 pre-signed account forms in respect of 26 clients and



(ii)               

obtained, altered and used, five (5) account forms in order to correct information to reflect client instructions.

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

James Neeson

The Hearing on the Merits in the matter of James Neeson ("Neeson") was held on August 27, 2105. Prior to the hearing, the parties filed an Agreed Statement of Facts (the "Agreed Statement of Facts") in which Neeson admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.

Following submissions from the parties, the Hearing Panel imposed the following sanctions on Neeson:

i)                   

the Respondent shall pay a fine in the amount of $10,000 (the "Fine"), payable in installments as follows:


a)      $2,500 to be paid by February 27, 2016;


b)      $2,500 to be paid by August 27, 2016;


c)      $2,500 to be paid by February 27, 2017; and


d)      $2,500 to be paid by August 27, 2017.



ii)                  

in the event that the Respondent is re-registered at any time before August 27, 2017, the Respondent shall pay the balance of the Fine within seven (7) days of the date of his re-registration;



iii)                

in the event the Respondent fails to pay the Fine in accordance with i) and ii) above, he shall immediately be suspended from conducting securities related business while in the employ of or associated with any MFDA Member until such time as the Respondent pays the balance of the Fine;



iv)                

the Respondent shall pay costs in the amount of $2,500; and



v)                 

the Respondent shall comply in future with MFDA Rule 2.1.1.

A copy of the Agreed Statement of Facts is available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, Neeson carried on business in the Elginburg, Ontario area.

Shi Jin (Michael) Li

A settlement hearing in the matter of Shi Jin (Michael) Li ("Li") was held on August 27, 2015, at which the Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and Li, as a consequence of which Li:

i)                   

shall be prohibited for four (4) months from conducting securities related business in any capacity while in the employ of or associated with any MFDA Members; and



ii)                  

shall in the future comply with MFDA Rule 2.1.1.

In the Settlement Agreement, Li admitted that in May 2014 he falsified the signature on a client account form and mislead the Member in its investigation into his conduct 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, Li carried on business in Scarborough, Ontario.

The Hearing Panel advised that it will issue its written reasons for all three (3) 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 103 Members and their over 80,000 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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