TORONTO, June 16, 2016 /CNW/ - The Mutual Fund Dealers Association of Canada ("MFDA") commenced disciplinary proceedings in respect of Seung Tung (Eric) Ng (the "Respondent") by Notice of Hearing dated November 4, 2015 (the Notice of Hearing").
A disciplinary hearing in this matter was held today in Toronto, Ontario before a three-member Hearing Panel of the MFDA's Central Regional Council. After hearing the submissions from Staff of the MFDA, the Hearing Panel found that the following allegations concerning the Respondent had been established:
Allegation #1: Between November 2011 and June 2013, the Respondent misappropriated approximately $55,129 from at least four (4) clients and one (1) individual, thereby failing to deal fairly, honestly and in good faith with the clients and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.
Allegation #2: Between November 2011 and June 2013, the Respondent opened at least four (4) mutual fund accounts and ten (10) bank accounts in the names of clients and individuals, and processed transactions in the accounts, without authorization from the clients and individuals and using falsified documentation, thereby failing to deal fairly, honestly and in good faith with the clients and engaging in conduct unbecoming an Approved Person, contrary to MFDA Rules 2.3.1(a) and 2.1.1.
Allegation #3: Commencing on October 9, 2013, the Respondent failed to cooperate with Staff's investigation into his conduct, contrary to section 22.1 of MFDA By-law No. 1.
The Hearing Panel imposed the following sanctions on the Respondent and advised that it will issue written reasons for its decision in due course:
- a permanent prohibition on the authority of the Respondent to conduct securities related business in any capacity;
- a fine in the amount of $150,000; and
- costs in the amount of $10,000.
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 83,000 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, Director, Litigation, 416-943-4619, [email protected]