TORONTO, May 30, 2012 /CNW/ - The MFDA today announced that it has commenced disciplinary proceedings in respect of Peter Haralds Brauns (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: Commencing March 8, 2002, the Respondent engaged in personal financial dealings with clients VK, LJ and SE in relation to:
|a)||approximately $661,000 the Respondent received from client VK as loans to or investments in a company incorporated and controlled by the Respondent;|
|b)||approximately $10,000 that the Respondent borrowed from client LJ and failed to repay during LJ's life; and|
|c)||approximately $150,000 that the Respondent obtained from client SE in July 2008 which he failed to repay prior to the commencement of the MFDA investigation into his conduct.|
Allegation #2: Between 2005 and December 2009, the Respondent conducted securities related business that was not carried on for the account and through the facilities of the Member by soliciting or otherwise facilitating the investment of approximately $625,000 by LS, RF, JM and SE in a company incorporated and controlled by the Respondent and failing to repay approximately $225,000 of that amount, contrary to MFDA Rules 1.1.1(a), 2.1.4 and 2.1.1.
Allegation #3: The Respondent failed to ensure that a conflict of interest between his interests and those of clients LJ and VK was addressed by the exercise of responsible business judgment influenced only by the best interests of the clients when the Respondent accepted and acted upon general powers of attorney or other similar authorizations from clients LJ and VK:
|a)||commencing on June 1, 2004, when the Respondent accepted an appointment as Estate Trustee with a will for the estate of client LJ;|
|b)||commencing on January 6, 2007, when the Respondent accepted a general power of attorney or other similar authorization for client VK; and|
|c)||commencing on September 17, 2008, when the Respondent accepted an appointment as Estate Trustee with a will for the estate of client VK following the death of client VK;|
contrary to MFDA Rules 2.1.4, 2.3.1(a), and 2.1.1(b) and (c).
The first appearance in this matter will take place by teleconference before a Hearing Panel of the MFDA's Central Regional Council on July 11, 2012 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 122 Members and their approximately 75,000 Approved Persons with a mandate to protect investors and the public interest.
For further information:
416-943-4672 or firstname.lastname@example.org