MFDA Hearing Panel approves Settlement Agreement with Kenneth Karasick

i) 

has paid a fine in the amount of $10,000;

ii) 

has paid costs in the amount of $2,500; and

iii) 

shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of one (1) year.

(a) 

from March 16, 2009 to July 16, 2009, he accepted and held a power of attorney from client FM in favour of himself, contrary to MFDA Rule 2.3.1(a);

(b)  

from May 22, 2009 to July 11, 2012, he was designated as a beneficiary of client FM's in-trust account at the Member, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rule 2.1.4;

(c)   

from July 2009 to January 2013, he engaged in personal financial dealings with client FM by accepting  a monetary gift of $309,475, thereby giving rise to a conflict or potential conflict of interest between client FM and the Respondent, which the Respondent failed to ensure was addressed by the exercise of responsible business judgment influenced only by the best interests of the client, contrary to MFDA Rules 2.1.4 and 2.1.1; and

(d)  

misled the Member by falsely answering the Member's Annual Consultant Certifications by stating that:

i)  

in 2009, he did not hold a POA over any clients at the Member;

ii) 

in 2011, he was not aware of being named as the beneficiary of a client's estate or any client account held with the Member; and

iii)

in 2009, 2010, 2011 and 2012, he had not received any monetary gifts from clients,

thereby interfering with the ability of the Member to supervise his conduct and comply with its obligations under MFDA Rule 2.1.4, contrary to MFDA Rules 1.1.2 and 2.1.1.