TORONTO, June 6, 2019 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced a disciplinary proceeding in respect of Christopher Martin Alfred Lee ("Respondent") by Notice of Hearing dated February 15, 2019.
A disciplinary hearing in this proceeding was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After receiving evidence and hearing submissions by the parties, the Hearing Panel found that one of the two allegations set out in the Notice of Hearing had been established. In particular, the Hearing Panel made the following finding of misconduct:
Allegation #1: Commencing on at least July 28, 2012, the Respondent misappropriated or failed to account for, approximately $1,363,400 solicited or received from at least twelve clients and seven individuals, thereby failing to deal fairly, honestly, and in good faith with clients, failing to observe high standards of ethics and conduct in the transaction of business, and engaging in business conduct or practice that is unbecoming or detrimental to the public interest, contrary to the Member's policies and procedures and MFDA Rules 2.1.1, 2.10, and 1.1.2.
After hearing submissions from Staff of the MFDA as to penalty, the Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons in due course:
- a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member;
- a fine in the amount of $1,463,400; and
- costs in the amount of $13,100
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 81,000 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
For further information: Charles Toth, Managing Director, Litigation, 416-943-4619, [email protected]