MFDA Hearing Panel makes findings and issues Decision and Reasons in the matter of Donald St. John

TORONTO, Oct. 28, 2016 /CNW/ - A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA") has issued its Decision and Reasons dated October 27, 2016 ("Decision and Reasons") in connection with a disciplinary hearing held in Toronto, Ontario on September 14, 2016, in the matter of Donald Jacob St. John (the "Respondent").

The parties filed an Agreed Statement of Facts ("Agreed Statement of Facts") in which the Respondent 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. In particular, the Respondent admitted that he:

  • in November 2013, misappropriated approximately $100,000 from client JP, thereby failing to deal fairly, honestly and in good faith with client JP, and observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1; and
  • commencing February 2015, failed to cooperate with MFDA Staff's investigation into his conduct by making statements to MFDA Staff which were false, misleading or incorrect, and failing to produce bank account statements requested by MFDA Staff, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.

In its Decision and Reasons, the Hearing Panel imposed the following sanctions on the Respondent:

a)   

a permanent prohibition on the Respondent's authority to conduct securities related business in any capacity while in the employ of or associated with any MFDA Member;

b)   

a fine in the amount of $50,000 in respect of the Respondent's failure to cooperate with Staff's investigation; and

c)    

costs to the MFDA in the amount of $7,500.

 

Copies of the Decision and Reasons and Agreed Statement of Facts are available on the MFDA website at www.mfda.ca. During the period described in the Agreed Statement of Facts, the Respondent conducted 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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http://www.mfda.ca

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