A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has imposed sanctions, including a permanent ban, on a former rep who misappropriated almost $70,000 from several clients, the MFDA announced on Tuesday.
In addition to the ban, the panel ruled that Ronald Morrell Schwartz should be fined $225,000 and pay $10,000 in costs.
According to the panel’s reasons for decision, Schwartz worked in the Kitchener-Waterloo, Ont. area with FundEX Investments Inc. from 2006 to 2009, and with HUB Capital Inc. from 2009 to 2014, when the dealer terminated his registration.
Starting in 2009 and over a period of six years, Schwartz processed a series of unauthorized redemptions and misappropriated at least $69,035 from six clients, the panel found. In addition, he created fictitious account statements to conceal his misconduct.
Stewart also failed to co-operate with an MFDA investigation into his conduct; he did not participate in the hearing, or respond to the MFDA’s allegations.