MFDA issues Notice of Hearing regarding Scott C. Armstrong

TORONTO, Feb. 9 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Scott C. Armstrong (the "Respondent").

MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary to the By-laws, Rules or Policies of the MFDA:

Allegation #1: Between about 2007 and 2008, the Respondent facilitated an investment by client AL in the amount of $40,000 in a corporation, Armstrong Financial Services Inc. ("Armstrong Financial"), in which the Respondent had a direct or indirect interest, in a manner which preferred his own interests over those of client AL and which failed to deal with client AL fairly, honestly and in good faith, contrary to Rules 2.1.4 and 2.1.1.

Allegation #2: Between about 2007 and 2008, the Respondent induced client AL to sign an agreement whereby client AL released any claim to ownership of shares of Armstrong Financial and resigned as an officer or director of Armstrong Financial in exchange for the Respondent promising to pay client AL $62,000, which the Respondent subsequently failed to do, thereby preferring his own interests over those of client AL and failing to deal fairly, honestly and in good faith with client AL, contrary to Rules 2.1.4 and 2.1.1.

Allegation #3: Between 2007 and 2008, the Respondent engaged in personal financial dealings with client AL by signing a promissory note in the amount of $62,000 payable by him to client AL in satisfaction of debts owed primarily by Armstrong Financial and Gateway Capital Growth Inc. ("Gateway") to client AL and thereafter failing to pay client AL in accordance with the terms of the promissory note, contrary to Rules 2.1.4 and 2.1.1.

The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Atlantic Regional Council on March 25, 2011 at 10:00 a.m. (Atlantic) 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 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.

The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 136 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.


SOURCE Mutual Fund Dealers Association of Canada

For further information:

Shaun Devlin
Vice-President, Enforcement
416-943-4672 or sdevlin@mfda.ca


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