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An MFDA disciplinary panel has fined and permanently banned a previously registered rep for failing to cooperate with an investigation.

According to a notice of hearing from July 2017, the investigation into David Hamilton Cudmore had to do with alleged “irregular and potentially unethical business practices.”

Cudmore, a mutual fund salesperson with Quadrus Investment Services Ltd. and a life insurance agent with London Life Insurance Company in P.E.I., was terminated from both roles as of June 2015, the notice says.

An MFDA hearing panel found that, beginning on Oct. 26, 2015, Cudmore failed to cooperate with an investigation into his activities by MFDA staff, contrary to section 22.1 of MFDA By-law No. 1 and MFDA Rule 2.1.1.

In its reasons for decision, the panel imposed the following sanctions:

  • a permanent prohibition on conducting securities-related business with any MFDA member;
  • ordered to pay a fine in the amount of $125,000; and
  • ordered to pay costs in the amount of $7,500.

Read the reasons for decision and notice of hearing.

Originally published on Advisor.ca
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