A settlement hearing in the matter of Clayton Kurt Swerdelian was held on February 26, 2015 in Calgary, Alberta before a hearing panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada.
That hearing panel has approved the settlement agreement between Staff of the MFDA and Swerdelian, as a consequence of which he:
- shall be prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member for a period of six months from the date of the acceptance of the settlement agreement by the Hearing Panel;
- has paid a fine in the amount of $10,000;
- has paid costs in the amount of $5,000; and
- shall in future comply with MFDA Rules 1.2.1(c), 2.4.2, 2.1.4 and MFDA Rule 2.1.1.
In the settlement agreement, Swerdelian admitted that from January 2008 to March 2009, he referred 13 clients and 12 individuals to Pacific Financial and Investec to obtain loans in the total amount of $942,000. The settlement agreement says he also received referral fees in the amount of $9,420 for doing so, such that he:
- had and continued in another gainful occupation for which he did not obtain written approval from the Members with whom he was registered, contrary to MFDA Rules 1.2.1(d) and 2.1.1; and
- entered into a referral arrangement as it related to the loans, contrary to MFDA Rules 2.4.2, 2.1.4 and Rule 2.1.1.
Read the settlement agreement.