Friday the 13th was indeed bad luck for several ex-associates from various firms. They’re being forced to pay hefty fines for outsider dealing. Here’s our roundup of these woeful employees.
Former Investia rep fined $150,000
A disciplinary hearing in the matter of Punch Bun Chiu Lui, a mutual fund salesperson with Investia Financial Services, found him guilty of several allegations. Among one, he engaged in personal financial dealings with clients GC and HW ranging from $170,000 to $118,000, and these clients had loaned to a company in which Chiu Lui had an interest.
Ex-MGI Financial rep fined $150,000
A disciplinary hearing in the matter of Jose Luis Bautista, a mutual fund salesperson with MGI Financial Inc., found him guilty of the allegations set out in a notice of hearing dated January 23, 2012. For example, he engaged in securities related business that was not carried on for the account, or through the facilities of the member, by selling investments in the total amount of approximately $500,000.
Former IPC rep to pay $35,000
In the matter of Jeffrey Murray Willis, a mutual fund salesperson with IPC Investment Corporation, a hearing panel found him guilty of engaging in securities-related business from October 2008 to May 2009 that was not carried on for the account and through the facilities of IPC.
And here are others who were found guilty this week for engaging in risky business.
Wells Fargo slapped with $175 million fine for racial bias
Wells Fargo Bank will pay at least $175 million to settle accusations that it discriminated against African-American and Hispanic borrowers in violation of fair-lending laws, the Justice Department announced. Deputy Attorney General James Cole said the bank’s discriminatory lending practices resulted in more than 34,000 African-American and Hispanic borrowers in 36 states and the District of Columbia paying higher rates for loans solely because of the color of their skin.
Investment firm fined $40,000
An IIROC hearing panel accepted a settlement agreement between the IIROC staff and Portfolio Strategies Securities, a Toronto-based investment dealer. The latter failed to designate a supervisor qualified to oversee options trading at the firm from December 2009 to November 2010.
Two jailed for boiler room scheme
Maitland Capital allegedly operated a boiler room scheme from two locations in Toronto, says a notice of hearing and statement of allegations issued by the OSC. Maitland hired salespersons to call investors and sell company shares, including several who were paid a commission ranging from 17% to 20% of the amounts paid for the purchases. An Ontario judge found Maitland, its president and director, and its secretary-treasurer guilty. Both men were sentenced to 21 months in jail and two years of probation. Maitland was fined $1 million.