AMutual Fund Dealers Associationof Canada (MFDA)hearing panel on Thursday announced findings of misconduct against a former advisor, imposing a fine of $250,000 and permanently banning him from engaging in securities-related business activities in any capacity while in the employ of or in association with, any MFDA member.
The hearing panel, which will later issue the reasons for its decision, concluded that between Feb. 2002 and Dec. 2014, Toronto-based Paul Leland Wemple “engaged in securities related business that was not carried on for the account and through the facilities of the [MFDA] Member by selling, recommending, referring or facilitating the sale of unapproved investment products to clients and other individuals outside the Member.” The decision further notes that Wemple failed to disclose these “dual occupations” to the firm he worked for and that he “misled the Member on compliance attestations and during compliance reviews” about his other business activities, thereby interfering with the Member’s ability to supervise him, according to MFDA rules .
Wemple — formerly a representative with MFDA-member firm FundEX Investments Inc. — was concurrently running other operations, specifically helming a corporation known as Syndacore Technologies Management Inc.
Under Syndacore’s operations, the Notice of Hearing says, between 2005 and 2008, Wemple sought out investors for the purpose of selling at least $905,000 of debentures that the company offered to 19 clients and two other individuals.
Upon learning that he was conducting unapproved business activities, FundEX terminated Wemple’s employment in 2014.
In addition to the $250,000 fine and permanent ban, Wemple must also pay $10,000 in costs for the investigation into his misconduct.
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