MFDA Hearing Panel approves Settlement Agreement with Kenneth Karasick
TORONTO, June 5, 2015 /CNW/ - A settlement hearing in the matter of Kenneth Karasick (the "Respondent") was held on June 3, 2015 in Vancouver, British Columbia before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA"). The Hearing Panel approved the settlement agreement ("Settlement Agreement") between Staff of the MFDA and the Respondent, as a consequence of which the Respondent:
| i) |
has paid a fine in the amount of $10,000; |
| ii) |
has paid costs in the amount of $2,500; and |
| iii) |
shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one (1) year. |
In the Settlement Agreement, the Respondent admitted that:
| (a) |
from March 16, 2009 to July 16, 2009, he accepted and held a power of attorney from client FM in favour of himself, contrary to MFDA Rule 2.3.1(a); |
|
| (b) |
from May 22, 2009 to July 11, 2012, he was designated as a beneficiary of client FM's in-trust account at the Member, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rule 2.1.4; |
|
| (c) |
from July 2009 to January 2013, he engaged in personal financial dealings with client FM by accepting a monetary gift of $309,475, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1; and |
|
| (d) |
misled the Member by falsely answering the Member's Annual Consultant Certifications by stating that: |
|
| i) |
in 2009, he did not hold a POA over any clients at the Member; |
|
| ii) |
in 2011, he was not aware of being named as the beneficiary of a client's estate or any client account held with the Member; and |
|
| iii)
|
in 2009, 2010, 2011 and 2012, he had not received any monetary gifts from clients, |
|
| thereby interfering with the ability of the Member to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and 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, the Respondent carried on business in Vancouver, British Columbia.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 102 Members and their approximately 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
Shaun Devlin, Senior Vice-President, Member Regulation, Enforcement, 416-943-4672, [email protected]; Jeff Mount, Vice-President, Pacific Region, 604-694-8846, [email protected]
Share this article