A former mutual fund salesperson with AEGON Dealer Services Canada Inc. has been fined $100,000 by the Mutual Fund Dealers Association for facilitating the sale of investments not approved by his firm, and for failing to disclose a dual occupation.

At a disciplinary hearing in Calgary on Thursday, an MFDA hearing panel imposed the fine, as well as costs of $7,500, against Kent Westgard. He was registered in Alberta as a mutual fund salesperson with AEGON Dealer Services from 2004 to 2007, and with Great Western Financial Corporation from 1998 to 2004.

Westgard, who is no longer registered in the securities industry in any capacity, is also permanently prohibited from conducting securities related business while employed by or associated with any MFDA member.

The panel found that three allegations against Westgard, outlined by the MFDA in December, had been established.

The MFDA had alleged that between 2003 and 2006, Westgard sold, referred or facilitated the sale of investments to clients that had not been approved by his firms. In particular, Westgard recommended investment opportunities to clients without disclosing them to his firms, and without providing the clients with details or materials on the investments.

In one case, the recommended investment turned out to be an off-shore oil and gas venture that Westgard was involved in along with a third party.

The clients provided Westgard with personal cheques for the investments in amounts ranging from $10,000 to $22,000, and with the exception of one client who threatened legal action, the clients have not been repaid the money they provided.

“There is no reasonable prospect” that the clients will recover their investments, the MFDA said.

A second violation of rules was Westgard’s involvement in these investments, which constituted “another gainful occupation” that was not disclosed to and approved by his firms, according to the MFDA.

Lastly, Westgard failed or refused to provide documents and information requested by the MFDA for the purpose of investigating his conduct.

IE