A former mutual fund rep has been fined over $1.6 million and permanently banned after a regulatory hearing panel found that he misappropriated money from several clients, misled his dealer and failed to cooperate with regulatory investigations into his dealings.
On Oct. 18, a Mutual Fund Dealers Association of Canada (MFDA) hearing panel released the reasons for a decision handed down in June confirming the sanctions imposed on Blair Harcourt Addison, a former rep with Desjardins Financial Security Investments Inc. (DFSI) in Mississauga, Ont.
Addison did not defend himself before the MFDA’s disciplinary hearing.
In its reasons, the MFDA panel found that Addison’s clients and others lost more than $1.4 million and “suffered stress and emotional suffering as a result of [his] misconduct.”
The panel said that DFSI compensated the victims for their losses, but that “this cannot ameliorate the breach of trust perpetrated by [Addison].”
Additionally, the panel found that Addison misled both his dealer and the MFDA and failed to cooperate with the MFDA’s investigation, demonstrating “a total disregard” for his regulatory obligations.
As a result, the panel concluded that Addison’s “misconduct is egregious and he has demonstrated that he is ungovernable,” and that he “caused significant damage to the integrity of the capital markets.”
“This harm is further aggravated in this case by the respondent’s disregard for the MFDA and its processes, which undermines its mandate of investor protection,” the MFDA said.
In addition to being permanently prohibited from the industry and fined more than $1.6 million, Addison was ordered to pay costs of $14,700.