MFDA bans, fines rep for borrowing from clients and not repaying loans

An MFDA hearing panel has banned and fined a dealing representative $650,531 for borrowing and not repaying money from clients, and then misleading members about the loans.

Mervin Evans Visneskie was registered as a mutual fund salesperson with HollisWealth Advisory Services Inc. and its predecessor firms at the time of his misconduct, said the MFDA’s reasons for decision.

The $650,531 fine “will be reduced by any amounts paid by Visneskie within 18 months to the individuals” affected who have not been repaid, the document said.

The hearing panel found that, beginning in 2002, Visneskie borrowed $764,300 from eight clients whom he failed to repay in full. These personal financial dealings resulted in Visneskie “placing his own interests ahead of the clients’ interests and creating a potential conflict of interest,” the reason for decision said.

Visneskie also misled the members he was registered with regarding his personal financial dealings with the eight clients, which interfered with the members’ ability to investigate Visneskie’s activities, it said.

In addition to the fines, Visneskie has been ordered to pay costs of $15,000 to the MFDA and has been permanently prohibited from conducting securities-related business in any capacity.

The reasons for the decision and penalty can be read here.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.