A disciplinary hearing in the matter of Punch Bun Chiu Lui, a mutual fund salesperson with Investia Financial Services, was held yesterday before a hearing panel of the MFDA’s Central Regional Council.
The panel found Chiu Lui guilty of allegations set out in a notice of hearing dated April 12, 2012. They were:
Allegation #1: Between August 4, 2005 and March 2, 2010, he engaged in personal financial dealings with clients GC and HW ranging from $170,000 to $118,000 that these clients had loaned to a company in which Chiu Lui had an interest. He personally guaranteed to repay, thereby giving rise to a conflict of interest between his interests and those of his clients, which he didn’t ensure was resolved by the exercise of responsible business judgment.
Allegation #2: Between January 2007 and March 2, 2010, he personally guaranteed to repay amounts loans. He failed to repay or otherwise account for $118,000 (as well as interest payments owing on that amount). He failed to deal fairly, honestly and in good faith with clients GC and HW, contrary to MFDA Rule 2.1.1.
Allegation #3: Between August 4, 2005 and February 2006, he had and continued in another gainful occupation that was not approved by Investia in respect of his involvement in and activities on behalf of two companies in which he had an interest, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
The panel made the following orders at the conclusion of the hearing:
- a permanent prohibition in respect to conducting securities related business in any capacity while in the employ of, or associated with, any MFDA Member;
- a fine of $150,000; and
- costs of $7,500.