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A three-member hearing panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada recently heard two separate proceedings. The particulars of both cases are below.

Karen Grenke

A settlement hearing in the matter of Karen Grenke was held on December 7, 2015, at which the hearing panel approved the settlement agreement between Staff of the MFDA and Grenke, as a consequence of which Grenke:

  • has paid a fine in the amount of $7,500;
  • has paid costs in the amount of $2,500;
  • shall be prohibited from conducting securities-related business in any capacity while in the employ or associated with any Member of the MFDA for a period of one year from the date of the settlement hearing; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the settlement agreement, Grenke admitted that:

  • Between September 2007 and April 2014, she obtained, possessed, and in some instances, used to process transactions, 86 pre-signed account forms with respect of 54 clients, contrary to MFDA Rule 2.1.1;
  • Between September 2007 and April 2014, she falsified and, in all but one instance, used to process transactions, 101 account forms with respect of 70 clients, contrary to MFDA Rule 2.1.1; and
  • On February 12, 2012 and on March 22, 2013, she misled the Member in her responses to various questions contained in the Member’s Annual Compliance Declaration, contrary to MFDA Rule 2.1.1.

Howard Leung

A settlement hearing in the matter of Howard Leung was held on December 7, 2015, at which the hearing panel approved the settlement agreement between Staff of the MFDA and Leung, as a consequence of which Leung:

  • has paid a fine in the amount of $2,500;
  • has paid costs in the amount of $2,500; and
  • shall in the future comply with MFDA Rule 2.1.1.

In the settlement agreement, Leung admitted that on June 28, 2014, he falsified the signature of a client on a redemption form.

The hearing panel advised it will issue its written reasons for both proceedings in due course.

Originally published on Advisor.ca

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