A former mutual fund salesperson with Independent Planning Group Inc. has been fined $45,000 by the Mutual Fund Dealers Association of Canada for distributing units in limited partnership investments that were prohibited by his firm, and misleading his firm about the sales.

The MFDA announced penalties on Tuesday against Ronald Brown, who was registered in Ontario as a mutual find salesperson and branch manager with IPG from May 2002 to May 2006.

An MFDA panel found that during this period, Brown sold $233,339.75 of units in four limited partnership investments to three clients and two other individuals. He was paid more than $40,000 in commissions for these sales.

The sales occurred after Brown sought permission from IPG to sell the securities, and was informed that the sale of such securities was prohibited.

Brown then denied selling the securities and receiving commissions from the sales, misleading his member firm and frustrating its efforts to ensure compliance with the regulations, the MFDA said.

Brown was fined $45,000 and ordered to pay costs of $5,000.

In addition, he has been permanently prohibited from being registered or acting in the capacity of ultimate designated person, chief compliance officer, compliance officer or branch manager for a member of the MFDA, and is prohibited from conducting securities related business while associated with any member of the MFDA for a period of five years.

IE