A Hearing Panel of the Prairie Regional Council of the Mutual Fund Dealers Association has permanently banned a former Scotia Securities Inc. mutual fund salesperson for misappropriating client funds and failing to co-operate with an MFDA investigation

At a hearing in Edmonton on July 9, the accepted the settlement agreement between Terry Lynn Sampson and MFDA staff.

Sampson admitted that from January 2006 to July 2008 she misappropriated approximately $167,500 from six Bank of Nova Scotia clients. She also admitted that in or about March 2008 she misappropriated approximately $5,000 from the account of a client of Scotia Securities Inc. Sampson further admitted that she failed to cooperate with an MFDA investigation.

The panel it would issue written reasons for its decision in due course.

Sampson was terminated by Scotia Securities and the Bank of Nova Scotia for her actions, is not currently registered in the securities industry in any capacity.

The MFDA settlement agreement noted that Sampson is recovering from a gambling addiction.

The agreement also noted that Sampson turned herself in to Edmonton Police, before any of her actions were discovered by Scotia Securities or Scotiabank.

On July 24, 2009, she pleaded guilty to criminal charges of unlawfully defrauding the Bank of Nova Scotia of money of a value exceeding $5,000.

On Dec. 10, 2009, she was sentenced to a term of imprisonment of 18 months. She was also ordered to pay restitution to Scotiabank in the amount of $132,000.

IE