The Mutual Fund Dealers Association of Canada (MFDA) has banned and fined a former advisor $300,000 plus costs for misappropriating funds from family members — only one of whom was an investment client.
Between March 2014 to February 2019, Christine Levesque was registered in Ontario as a dealing representative with Quadrus Investment Services Ltd., and conducted business in Eastern Ontario, the decision document said. Levesque was also insurance-licensed and sold products from London Life Insurance Co., a Quadrus affiliate.
Among Levesque’s total of four clients — her husband, mother-in-law, aunt and mother — only her husband was a Quadrus investment client. Levesque allegedly redeemed investments, totalling more than $59,000, in the husband’s account without his knowledge after forging his signature.
Similar redemptions occurred in two of the insurance client accounts, and money given to Levesque by the third insurance client (Levesque’s mother) wasn’t invested. The three insurance clients lost more than $144,000, the decision said.
The MFDA’s penalty was based on several factors, taking into account client losses and Levesque’s conduct.
Her conduct “is so egregious” that she “should never be readmitted to the securities industry,” the decision said.
Further, Levesque didn’t co-operate with the MFDA’s investigation — “a significant factor in the penalty,” it said.
It also noted that the Financial Services Regulatory Authority of Ontario “appears” not to have taken enforcement action, which was another factor in the penalty decision.
Also, the penalty may have been higher, but all four clients were reimbursed by the dealer and insurance affiliate, the decision said.
In addition to the ban and fine, Levesque was ordered to pay costs of $20,000.