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A former mutual fund rep has been permanently banned and fined $40,000 by an MFDA hearing panel for engaging in outside activity not disclosed to his firm.

Anastasios (Tom) Terzis, a registered rep until 2016 with IPC Investment Corporation in Toronto, sold or made referrals for exempt market investments to approximately 41 clients, totalling roughly $4.7 million, the MFDA said in its settlement agreement. The outside activity was not disclosed to or approved by his firm.

Terzis referred his clients to two people to buy the investments outside of IPC, the agreement said. He received approximately $334,880 in commissions or referral fees. In some cases, his clients made redemptions in their mutual fund accounts in order to buy the investments.

From 2013 to March 2016 (when his registration was terminated), Terzis also misled IPC regarding his knowledge and involvement in the activity, the settlement agreement said.

In addition to the $40,000 fine, Terzis must pay costs of $5,000.

The misconduct involved two other people, one of whom was unregistered until November 2015, the MFDA said.

Terzis has no previous disciplinary history with the MFDA.

Read the settlement agreement here.