MFDA finds against Douglas Wellings

By Staff | September 28, 2011 | Last updated on September 28, 2011
1 min read

A disciplinary hearing in the matter of Douglas Wellings was held Tuesday in Toronto, Ontario before a three-person hearing panel of the MFDA’s Central Regional Council. The hearing panel found that all the allegations set out in the notice of hearing dated June 27, 2011 had been established:

Allegation #1: Commencing March 8, 2002, the respondent continued to engage in personal financial dealings with client MF by failing to repay or otherwise account for approximately $35,000 the respondent had borrowed from client MF in July 1997, contrary to MFDA Rules 2.1.4 and 2.1.1.
Allegation #2: In January 2009, the respondent failed to deal fairly, honestly and in good faith with client MF when he attempted to misappropriate $98,897.67 from client MF by selling her an annuity that he knew did not exist, contrary to MFDA Rule 2.1.1.
Allegation #3: Commencing in November 2009, the respondent has failed to comply with requests by the MFDA to attend at the offices of the MFDA to give information about the matters under investigation, contrary to MFDA Rule 22.1 of MFDA By-law No. 1.

The hearing panel made the following orders at the conclusion of the hearing and advised that it would issue written reasons for its decision in due course:

  • a permanent prohibition on the authority of the respondent to conduct securities related business while in the employ of or associated with any member of the MFDA;
  • a fine in the amount of $235,000; and
  • costs in the amount of $7,500. staff


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