The MFDA has permanently banned and fined a former advisor $50,000 for conducting securities-related business outside his firm, including discretionary trading.
Raymond Blais, a former MFDA advisor in Sudbury, Ont., admitted that, between 2003 and 2015, he arranged for at least 120 investors—including 81 clients—to open online discount brokerage accounts outside his firm, says the agreed statement of facts. He also recommended or processed trades for these accounts using login information provided by the investors.
During the period in question, Blais was registered with W.H. Stuart Mutuals Ltd. (July 2000 to May 2013) and then, following the MFDA suspension of the now defunct firm, with Keybase Financial Group Inc. (May 2013 to November 2015).
The trades involved securities that weren’t mutual funds, and included precious metal equities and foreign exchange, says the statement. Trades were similar to those Blais processed in his own online trading accounts.
The firms were unaware of the advisor’s trading activities, and the trades weren’t carried out for or through the firms.
Blais received at least $70,000 for the trades and investment advice, paid to him personally, says the statement.
In addition to the $50,000 fine, Blais must pay costs of $4,500. He claims to be insolvent, says the statement, and is no longer securities-registered.
For full details, read the agreed statement of facts.