TORONTO, March 20 /CNW/ - The Mutual Fund Dealers Association of Canada
("MFDA") today announced that it has commenced disciplinary proceedings
against Gerard and Mavis Brake.
MFDA staff alleges in its Notice of Hearing that Gerard and Mavis Brake
engaged in the following conduct contrary to the By-laws, Rules or Policies of
Allegation No. 1: Between November 2003 and August 2006, the Respondents
had or continued in occupations that were not disclosed to or approved by the
Member, contrary to MFDA Rule 1.2.1(d).
Allegation No. 2: Between November 2003 and August 2006, the Respondents
engaged in securities related business outside the Member by selling more than
$1 million in shares of corporations that they owned and operated to 24
clients, which sales were not carried on for the account of the Member or
through the facilities of the Member, contrary to MFDA Rule 1.1.1(a);
Allegation No. 3: Between November 2003 and August 2006, the Respondents
sold more than $1 million in shares of corporations that the Respondents owned
and operated to 24 clients, thereby giving rise to a conflict of interest
which the Respondents failed to disclose to the clients and to the Member and
which the Respondents failed to address by the exercise of responsible
business judgment influenced only by the best interests of the clients,
contrary to MFDA Rules 2.1.4F(1)F and 2.1.1.
Allegation No. 4: Between November 2003 and August 2006, the Respondents
solicited and accepted more than $1 million from 24 clients to be invested on
their behalf in corporations that the Respondents owned and operated and have
failed to return or otherwise account for the monies, contrary to MFDA Rule
Allegation No. 5: Between November 2003 and August 2006, the Respondent
Mavis E. Brake failed to fulfill her obligations as a Branch Manager by
intentionally concealing from the Member conduct and outside business
activities that the Respondents were engaging in that contravened the Member's
policies and procedures and MFDA regulatory requirements, contrary to MFDA
Rule 2.5.3(b) and 2.1.1.
Allegation No. 6: Commencing May 30, 2006, the Respondents have refused
to produce for inspection and provide copies of documents and records
requested by the MFDA during the course of an investigation, contrary to
section 22.1(b) of MFDA By-law No. 1.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA Prairie Regional on Wednesday, April 23,
2008 at 10:00 a.m. (Manitoba) or as soon thereafter as can be held. The
purpose of the first appearance is to schedule the date for the commencement
of the hearing on its merits and to address any other procedural matters.
The first appearance is open to the public, except as may be required for
the protection of confidential matters. Members of the public who want to
listen to the teleconference for the first appearance should contact Yvette
MacDougall, MFDA Hearings Coordinator, at 416-943-4606 or by e-mail at
email@example.com on or before Monday, April 21, 2008 to obtain particulars.
The Hearing on the Merits will take place at a location in Winnipeg, Manitoba
at a time, place and venue to be announced at a later date.
A copy of the Notice of Hearing is available on the MFDA website at
The Mutual Fund Dealers Association of Canada is the self-regulatory
organization for Canadian mutual fund dealers. The MFDA regulates the
operations, standards of practice and business conduct of its 158 Members and
their approximately 75,000 Approved Persons with a mandate to protect
investors and the public interest.
For further information:
For further information: Shaun Devlin, Vice-President, Enforcement,
(416) 943-4672 or firstname.lastname@example.org