A disciplinary hearing in the matter of Wijaysri Sivasubramanian concluded yesterday in Toronto, Ontario before a three-person hearing panel of the MFDA’s Central Regional Council. After hearing submissions from staff of the MFDA, the hearing panel found that the following allegations against the respondent had been established:
Allegation #1: Between 2002 and 2009, the respondent engaged in securities related business that was not carried on for the account of and through the facilities of the member by recommending and facilitating loans by at least nine clients and two individuals in three companies that the respondent owned and/or operated, contrary to MFDA Rules 1.1.1 and 2.1.1.
Allegation #2: Between 2002 and 2009, the respondent had and continued in another gainful occupation that was not disclosed to or approved by the member by recommending and facilitating loans by at least nine clients and two individuals to three companies that the respondent owned and/or operated, contrary to MFDA Rules 1.2.1 (c) and 2.1.1.
Allegation #3: Between 2002 and 2009, the respondent failed to disclose to nine clients and two individuals who invested in three companies the extent of his interest in the three companies, thereby placing his own interests above those of the clients and individuals and giving rise to an actual or potential conflict of interest which he failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients and individuals, contrary to MFDA Rules 2.1.1 and 2.1.4.
Allegation #4: Between 2002 and 2009, the respondent solicited and accepted a total amount of approximately $756,000 from nine clients and two individuals to be invested in three companies that the respondent owned and/or operated and has failed to return or account for most of the monies, contrary to MFDA Rule 2.1.1.
Allegation #5: Commencing on or about May 25, 2009, the respondent has failed to respond to MFDA staff and provide answers to undertakings given during his MFDA interview, contrary to section 22 of MFDA By-law No. 1.
The hearing panel made the following orders at the conclusion of the hearing and advised that it will issue written reasons for its decision in due course:
- The respondent is permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any Member of the MFDA;
- The respondent shall pay a global fine in the amount of $1,000,000; and
- The respondent shall pay costs in the amount of $25,000.
Read a copy of the Amended Notice of Hearing.