A disciplinary hearing in the matter of Jose Luis Bautista, a mutual fund salesperson with MGI Financial Inc., was held yesterday before a three-person hearing panel of the MFDA’s Central Regional Council.
It found Bautista guilty of the allegations set out in a notice of hearing dated January 23, 2012. They were:
Allegation #1: Between October 30, 2006 and December 17, 2009, he had and continued in at least four gainful occupations that were not disclosed to or approved by the member, contrary to MFDA Rules 1.2.1(d) and 2.1.1.
Allegation #2: Between October 30, 2006 and December 17, 2009, he engaged in securities related business that was not carried on for the account, or through the facilities of the member, by selling investments in the total amount of approximately $500,000 in a company outside the accounts and facilities of the member, contrary to MFDA Rules 1.1.1(a) and 2.1.1.
Allegation #3: Between October 30, 2006 to December 17, 2009, he engaged in personal financial dealings with clients, thereby creating a conflict or potential conflict of interest between his own interests and his clients’ interests.
Bautista is permanently prohibited from conducting securities related business in any capacity while in the employ of, or associated with, any MFDA Member. He must also pay a fine of $150,000 and costs of $7,500.