TORONTO, June 18 /CNW/ - A Settlement Hearing in the matter of Nathan Hersh Disenhouse was held today in Toronto, Ontario before a Hearing Panel of the MFDA's Central Regional Council. The Hearing Panel approved the Settlement Agreement between Mr. Disenhouse and MFDA Staff, as a consequence of which Mr. Disenhouse:
- has been suspended from conducting securities related business in any
capacity while in the employ of or associated with any MFDA Member
for a period of 10 years;
- has paid a fine in the amount of $15,000; and
- has paid costs in the amount of $5,000.
The Hearing Panel advised that it would issue written reasons for its decision in due course.
In the Settlement Agreement, Mr. Disenhouse admitted that he:
(a) engaged in securities related business outside the Member by selling,
referring or facilitating the sale of $730,000 of an investment
product to 18 individuals, 11 of whom were clients, that had not been
approved for sale by the Member;
(b) did not disclose to investors that he was a shareholder in the
company which was, in turn, the sole shareholder of the company
offering the investment product;
(c) engaged in a dual occupation that was not disclosed to and approved
by the Member by entering into a referral agreement and referring
clients to a third party; and
(d) obtained and maintained blank, pre-signed trading forms in client
files and used such forms to process a trade in at least one client
A copy of the Settlement Agreement 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 139 Members and their approximately 73,000 Approved Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information: For further information: Shaun Devlin, Vice-President, Enforcement, 416-943-4672 or email@example.com