A disciplinary hearing in the matter of Vaughan Spencer was held today in Toronto, before a three-person panel of the MFDA’s Central Regional Council. Spencer failed to comply with the MFDA during an investigation of one of his colleagues at IPC Investment Corporation.

On March 1, 2011, Spencer failed to attend an interview requested by MFDA staff during the course of an investigation of Conrad Arthur Nunweilera, a former IPC registered rep in B.C. His actions were contrary to s. 22.1 of MFDA By-law No. 1.

The MFDA has alleged, among other things, that Nunweiler borrowed money from at least two clients, creating a conflict of interest between Nunweiler’s interests and the clients’ interests. In a reply to the claims, he alleged Spencer—then a branch manager at IPC—recommended he solicit funds from clients, which would be invested in business ventures or investments.

From January 2011 to April 2011, the MFDA attempted to contact Spencer and meet with him. He denied all allegations and refused to communicate with the association.

In the opinion of the hearing panel, he:

(a) failed to carry out any agreement with the MFDA;

(b) failed to comply with or carry out the provisions of any federal or provincial statute relating to the business of the Member or of any regulation or policy made pursuant thereto;

(c) failed to comply with the provisions of any By-law, Rule or Policy of the MFDA;

(d) has engaged in any business conduct or practice which such Regional Council in its discretion considers unbecoming or not in the public interest;

(e) or is otherwise not qualified whether by integrity, solvency, training or experience

The panel made the following orders at the conclusion of the hearing:

  • a permanent prohibition on the authority of the Respondent to conduct securities related business while in the employ of or associated with any Member of the MFDA;
  • a fine in the amount of $50,000; and
  • costs in the amount of $7,500.

Read the notice of hearing.