The Mutual Fund Dealers Association of Canada commenced a disciplinary proceeding in respect of Jeffrey D. Mushaluk by Notice of Hearing dated January 11, 2016.
The hearing of this matter on its merits took place on July 26, 2016 in Vancouver, British Columbia before a hearing panel of the MFDA’s Pacific Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts in which the respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a hearing panel pursuant to section 24.1 of MFDA By-law No. 1.
In particular, the respondent admitted that between August 2012 and May 2013, he engaged in securities-related business that was not carried on for the account and through the facilities of the Member, and acted outside his registration as a mutual fund salesperson, by selling, recommending, facilitating the sale, or making referrals in respect of the sale of shares of a junior mining company listed on the Toronto Venture Exchange to at least 29 clients, contrary to MFDA Rules 1.1.1 and 2.1.1.
Following submissions from the parties with respect to penalty, the hearing panel imposed the following sanctions on the respondent and advised that it will issue written reasons in due course:
- a three-year prohibition from conducting securities-related business in any capacity while in the employ of, or associated with any Member of the MFDA, effective from August 1, 2014 to July 31, 2017;
- a fine in the amount of $25,000, payable on or before July 31, 2017; and
- costs in the amount of $5,000, payable by August 31, 2016.
Read the Notice of Hearing and Agreed Statement of Facts. During the period described in the Agreed Statement of Facts, the respondent carried on business in Salmon Arm, British Columbia.