MFDA Hearing Panel makes findings against Russell Brower-Berkhoven
TORONTO, Aug. 28, 2012 /CNW/ - A disciplinary hearing in the matter of Russell Brower-Berkhoven was held today in Calgary, Alberta before a three-person Hearing Panel of the MFDA's Prairie Regional Council. The Hearing Panel found that the allegations set out in the Notice of Hearing dated December 2, 2011 had been established:
|Allegation #1: Between August 14, 2006 and November 24, 2009, the Respondent led LM, an individual, to believe that:|
the Respondent had opened an account for LM at the Member;
the Respondent was dealing with LM in LM's capacity as a client of the Member; and
the Respondent was processing transactions for LM in an account at the Member in accordance with LM's instructions;
|When, in fact:|
the Respondent had not opened an account for LM;
the Member was not aware of LM and was not supervising the Respondent's dealings with LM; and
the Respondent was not processing any securities related business on LM's behalf through the accounts and facilities of the Member;
|thereby engaging in conduct unbecoming an Approved Person, contrary to MFDA Rule 2.1.1.|
|Allegation #2: Between July 15, 2006 and November 24, 2009, the Respondent solicited and accepted $40,000 from LM purportedly to invest on LM's behalf in Phoenix Financial Services, a company owned or controlled by the Respondent, and failed to repay or otherwise account for $35,000 of the monies, contrary to MFDA 2.1.1.|
|Allegation #3: Between July 15, 2006 and December 29, 2006 and then again from November 23, 2007 to November 24, 2009, the Respondent engaged in securities related business that was not carried on for the account and through the facilities of the Member by selling or facilitating the sale of securities in Phoenix Financial Services, a company owned or controlled by the Respondent, to LM, RC and HC outside the Member, contrary to MFDA Rules 1.1.1(a) and 2.1.1.|
|Allegation #4: Between July 15, 2006 and December 29, 2006 and then again from November 23, 2007 to November 24, 2009, the Respondent had and continued in another gainful occupation that was not disclosed to and approved by the Member by selling or facilitating the sale of securities in Phoenix Financial Services, a company owned or controlled by the Respondent, to LM, RC and HC, contrary to MFDA Rules 1.2.1(d) and 2.1.1.|
|Allegation #5: Commencing November 27, 2009, the Respondent has failed or refused to provide documents, information, and attend for an interview requested by the MFDA for the purpose of investigating the Respondent's conduct, contrary to s. 22.1 of MFDA By-law # 1.|
The Hearing Panel imposed the following penalties and costs at the conclusion of the hearing and advised that it will issue written reasons for its decision 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 of $200,000; and
- costs of $7,500.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 120 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
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