MFDA Hearing Panel imposes penalties and costs on Michael Breuer
TORONTO, Jan. 8, 2015 /CNW/ - The penalty phase of a disciplinary hearing in the matter of Michael Robert Breuer (the "Respondent") was held today in Vancouver, British Columbia before a three-member Hearing Panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada ("MFDA").
In its Decision and Reasons (Misconduct), dated November 13, 2014, the Hearing Panel found that the six (6) allegations made against the Respondent in the Amended Notice of Hearing dated May 27, 2014, had been established, and the particulars of which are:
Allegation #1: Between December 30, 2008 and June 30, 2010, the Respondent engaged in personal financial dealings with client ES by entering into an agreement with client ES whereby the Respondent personally guaranteed to compensate client ES for any shortfall in the value of client ES's account below $150,000, thereby giving rise to a conflict or potential conflict of interest between the Respondent and client ES which the Respondent failed to address 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.
Allegation #2: Between June 28 and July 8, 2009, the Respondent engaged in unauthorized discretionary trading by processing two redemptions, totaling approximately $17,400, in client ES's account and depositing the proceeds in client ES's bank account, all without the client's knowledge, instructions or approval, contrary to MFDA Rules 2.3.1(a) and 2.1.1.
Allegation #3: Between June 28 and July 8, 2009, the Respondent engaged in conduct unbecoming an Approved Person and failed to observe high standards of ethics and practice in the conduct of business by using client ES's own monies to compensate her for losses sustained in her account, without her knowledge or approval, contrary to MFDA Rule 2.1.1.
Allegation #4: On or about July 2, 2010, the Respondent engaged in conduct unbecoming an Approved Person and failed to observe high standards of ethics and practice in the conduct of business by changing the mailing address for statements sent by a mutual fund company to client ES from client ES's home address to the Respondent's branch office address, without the client's knowledge, instructions or approval, contrary to MFDA Rule 2.1.1.
Allegation #5: Between July 16, 2008 and September 28, 2011, the Respondent engaged in conduct unbecoming an Approved Person and failed to observe high standards of ethics and practice in the conduct of business by misrepresenting to clients GL and ML that the principal amounts of the investments in their account were fully guaranteed, contrary to MFDA Rule 2.1.1.
Allegation #6: Commencing July 19, 2013, the Respondent has failed or refused to provide documents and information to, and to attend an interview requested by, the MFDA during the course of an investigation, contrary to s. 22.1 of MFDA By-Law No. 1 and MFDA Rule 2.1.1.
After hearing submissions from Staff of the MFDA, 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 while in the employ of or associated with any MFDA Member;
- a fine in the amount of $150,000; and
- costs in the amount of $7,500.
A copy of the Decision and Reasons (Misconduct) is available on the MFDA website at www.mfda.ca. During the period described in the Decision and Reasons (Misconduct), the Respondent carried on business in Pitt Meadows, British Columbia.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its 107 Members and their approximately 80,000 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
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