A hearing panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada has permanently banned a mutual fund sales person convicted for producing fraudulent income tax returns.

From July 1999 to December 2006, Pursimia Day was registered in Ontario as a fund sales person and scholarship plan rep for WFG Securities of Canada Inc. Day was terminated by WSG on January 2, 2007 as a consequence of not cooperating with WFG in renewing her registration. She is not currently registered in the securities industry in any capacity.

On July 24, 2007, Dy was convicted of fraud and sentenced to two years in jail and three years probation. The conduct underlying the conviction took place between February and April 2006, during which the she knowingly produced fraudulent 2005 income tax returns for 1,190 tax clients that included approximately 1,393 false donation receipts totalling $3,791,338.

Dy admitted to the conviction, and at a meeting held Monday, November 9, the MDFA hearing panel found that she had failed to observe the high standards of ethics and conduct prescribed by MFDA rules.

As a consequence of Dy’s admission, MFDA staff withdrew two other allegations against her.

The hearing panel made the following orders at the conclusion of the hearing:

• a fine in the amount of $50,000;
• a permanent prohibition on the authority of Dy to conduct securities related business in any capacity while in the employ of or associated with any MFDA member firm; and
• costs in the amount of $2,500.

IE