An MFDA hearing panel has permanently banned and fined a former representative $50,000 for not cooperating with an investigation.
Rholyn St. George Hylton worked for Sun Life Financial Investment Services (Canada) Inc. in Toronto from 2010 to 2016.
The MFDA issued a notice of hearing in February 2018 that alleged Hylton didn’t cooperate with an MFDA investigation into his conduct beginning in January 2017.
A first appearance by teleconference was set for April 2018. Hylton didn’t appear at the teleconference nor did he have a lawyer present.
A hearing was subsequently set for Sept. 13, 2018, but he didn’t appear at this hearing or have a lawyer present, either.
In its decision and reasons document, the MFDA said there was “no doubt” Hylton knew about its investigation into his conduct. The SRO first tried to schedule an interview with Hylton beginning in January 2017. Hylton agreed to an appointment with the MFDA in March 2017, but didn’t attend. Hylton hasn’t responded to communication from the MFDA since.
A year later, in March 2018, Hylton was personally served with a copy of the notice of hearing, but didn’t respond.
“[Hylton’s] conduct in this case has prevented MFDA investigation staff from determining the full nature and extent of his activities,” the regulator said in the decision document.
The SRO was investigating allegations that Hylton borrowed money from his clients. “Because the Respondent did not produce any documents or attend an interview, the extent of his borrowing is not known,” the MFDA said, but “it appears to have been at the lower range of seriousness.”
As such, the regulator decided on a $50,000 fine.
The allegations of Hylton borrowing money came after another MFDA investigation that found Hylton borrowed $2,200 from a client in 2014. MFDA didn’t hold a hearing in this case, but sent Hylton a warning letter in May 2016.
Sun Life contacted his other clients to “determine whether other similar conduct would come to light,” the decisions and reasons document said. Another client then told Sun Life she had lent Hylton money, which led to this investigation. The client, however, didn’t cooperate.
“The MFDA and Sun Life do not know the amount involved, but it seems reasonable to conclude that if the sum had been substantial and had been misappropriated, the client who loaned the money would likely have sought some compensation from Sun Life, and there is no evidence that such a claim was made,” the decision document said.
The regulator was able to determine that this borrowing took place before Hylton received the warning letter. The fine would have been larger if his conduct occurred after he received the letter, the decision document said.
Hylton was also ordered to pay costs of $7,500. He is not currently registered in the securities business.