TORONTO, March 19, 2013 /CNW/ - A disciplinary hearing in the matter of Luigi Francesco Ciardullo (the "Respondent") was held today in Toronto, Ontario before a Hearing Panel of the MFDA's Central Regional Council. The Hearing Panel found that the allegations set out in the Notice of Hearing dated September 11, 2012 had been established and imposed the following sanctions and costs at the conclusion of the hearing:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of, or associated with, any MFDA Member;
- a fine of $500,000; and
- costs of $7,500.
The Notice of Hearing contained the following allegations:
Allegation #1: Between March 2006 and November 26, 2010, the Respondent engaged in personal financial dealings with clients by accepting a total of at least $385,609 from at least 15 clients, at least $350,209 of which the Respondent has failed to repay or otherwise account for, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: On April 2, 2009, the Respondent made false statements to MFDA Staff during the course of an investigation when he stated that he had only engaged in personal financial dealings with one client when he knew that to be an incorrect response, thereby:
a) failing to comply with his obligations under s. 22.2 of MFDA By-law No. 1; and
b) failing to observe high standards of ethics and conduct in the transaction of business, contrary to MFDA Rule 2.1.1
Allegation #3: Commencing April 19, 2011, the Respondent has failed or refused to provide documents and information and to attend an interview requested by MFDA Staff during the course of an investigation, contrary to s. 22.1 of MFDA By-law No. 1.
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
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