TORONTO, Feb. 9 /CNW/ - The MFDA today announced that it has commenced
disciplinary proceedings in respect of Scott C. Armstrong (the
MFDA staff alleges in its Notice of Hearing that the Respondent engaged
in the following conduct contrary to the By-laws, Rules or Policies of
Allegation #1: Between about 2007 and 2008, the Respondent facilitated an investment
by client AL in the amount of $40,000 in a corporation, Armstrong
Financial Services Inc. ("Armstrong Financial"), in which the
Respondent had a direct or indirect interest, in a manner which
preferred his own interests over those of client AL and which failed to
deal with client AL fairly, honestly and in good faith, contrary to
Rules 2.1.4 and 2.1.1.
Allegation #2: Between about 2007 and 2008, the Respondent induced client AL to sign
an agreement whereby client AL released any claim to ownership of
shares of Armstrong Financial and resigned as an officer or director of
Armstrong Financial in exchange for the Respondent promising to pay
client AL $62,000, which the Respondent subsequently failed to do,
thereby preferring his own interests over those of client AL and
failing to deal fairly, honestly and in good faith with client AL,
contrary to Rules 2.1.4 and 2.1.1.
Allegation #3: Between 2007 and 2008, the Respondent engaged in personal financial
dealings with client AL by signing a promissory note in the amount of
$62,000 payable by him to client AL in satisfaction of debts owed
primarily by Armstrong Financial and Gateway Capital Growth Inc.
("Gateway") to client AL and thereafter failing to pay client AL in
accordance with the terms of the promissory note, contrary to Rules
2.1.4 and 2.1.1.
The first appearance in this matter will take place by teleconference
before a Hearing Panel of the MFDA's Atlantic Regional Council on March
25, 2011 at 10:00 a.m. (Atlantic) in order to schedule a date for the
commencement of the hearing on the merits and to address any other
procedural matters. The first appearance will be open to the public,
except as may be required for the protection of confidential matters.
A copy of the Notice of Hearing 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 136 Members and their approximately 75,000 Approved
Persons with a mandate to protect investors and the public interest.
SOURCE Mutual Fund Dealers Association of Canada
For further information:
416-943-4672 or firstname.lastname@example.org