TORONTO, Oct. 15, 2013 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Barry Allan Hunt (the "Respondent"). MFDA staff alleges in its Notice of Hearing that the Respondent engaged in the following conduct contrary the By-laws, Rules or Policies of the MFDA:
Allegation #1: Between September 12, 2007 and June 24, 2011, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member by selling, recommending, referring or facilitating the sale outside the Member of:
|(a)||$100,000 of a real estate investment product to client VM; and|
|(b)||$660,000 of investments in a real estate development project that he owned and operated to clients VM, LT, BM and 11 other individuals; and|
|(c)||$60,000 of investments in two housing restoration projects to client VM;|
contrary to MFDA Rules 1.1.1(a) and 2.1.1.
Allegation #2: Between February 2008 and June 24, 2011, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Member by:
|a)||selling, recommending, referring or facilitating the sale of $100,000 of a real estate investment product to client VM outside the Member; and|
|b)||owning, operating and selling investments in the real estate development project referred to in Allegation 1(b) above; and|
|c)||selling, recommending, referring or facilitating the sale of investments in the housing restoration projects referred to Allegation 1(c) above.|
contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation #3: Between September 12, 2007 and June 24, 2011, the Respondent engaged in personal financial dealings with clients VM, LT and BM by:
|a)||selling an investment of $60,000 in a property owned by the Respondent to each of clients VM, LT and BM; and|
|b)||borrowing $120,000 from client VM;|
thereby giving rise to a conflict or potential conflict of interest between the interests of the Respondent and the interests of clients VM, LT and BM 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.
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on November 25, 2013 at 10:00 a.m. (Eastern) in the MFDA hearing room located at 121 King Street West, Suite 1000, Toronto, Ontario. The purpose of the appearance is to set a date for the hearing of this matter on its merits and to address any other procedural matters and will be open to the public, except as may be required for the protection of confidential matters.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 115 Members and their approximately 80,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE: Mutual Fund Dealers Association of Canada
For further information:
Managing Director, Enforcement