The Mutual Fund Dealers Association of Canada has fined a former Investors Group fund salesperson $25,000 for failing to account for money that he received from a client, and accepting personal remuneration from a client, among other regulatory violations.

Jeffrey Levy, who was a registered mutual fund salesperson with Investors Group Financial Services in Ontario from 2000 to 2006, has also been permanently prohibited from conducting securities related business in any capacity with any MFDA member, and ordered to pay costs of $25,000.

An MFDA hearing panel imposed the penalties this week, after Levy admitted to a number of allegations against him.

The panel found that in 2005, Levy solicited and accepted $10,000 from a client to invest on their behalf, and thereafter failed to account for the monies.

In another instance, Levy entered an agreement with a client to manage their investments in exchange for a consulting service fee of approximately $9,000, which he accepted in the form of a personal cheque.

The hearing panel found that in another instance, Levy accepted a fee of $150 from clients to prepare wills for them, which he subsequently failed to deliver.

Levy also violated MFDA rules by making false statements to his firm and to the Ontario Securities Commission about his professional history, the hearing panel found.

In particular, when applying for registration as a mutual fund salesperson, Levy provided inaccurate reasons for being disbarred by the Law Society of Upper Canada — an event that occurred in 1995. Levy said the disbarment was a result of failing to keep a proper set of books, failing to file an annual statement and a mistaken transfer of funds from a client account to a personal account.

This account contrasted with the actual reasons for the disbarment, which included borrowing $5,000 from a client and misappropriating between $2,200 and $3,800 from a client, among other things.

“The respondent failed to fully, honestly and accurately describe the circumstances surrounding his disbarment,” the hearing panel said.

Lastly, the hearing panel found that Levy failed to co-operate with the MFDA’s investigation into his conduct.

Levy was terminated by Investors Group in May 2006, and is no longer registered in the securities industry in any capacity.

IE