A hearing panel of the of the Mutual Fund Dealers Association of Canada has ordered a permanent registration ban, a $185,000 fine and costs, against a former rep with Partners in Planning.

The panel of the MFDA’s Pacific Regional Council has issued its decision and reasons in a disciplinary hearing held in Vancouver on June 7, against a former mutual fund rep with Partners in Planning, Raymond Brown-John. The panel found that the four allegations set out by MFDA staff in a notice of hearing issued in January 2005 had been established.

MFDA staff had alleged that between December 1999 and February 2003, Brown-John failed to deal fairly, honestly and in good faith with two of his clients by misappropriating from them a total amount of about $83,000. Staff also alleged that between May 2001 and February 2003, “Brown-John preferred his own interests to those of one of his clients and failed to exercise responsible business judgment influenced only by the best interest of his client”, by recommending that the client redeem $67,000 in mutual funds and lend him the proceeds, which he subsequently failed to repay.

MFDA staff also alleged that Brown-John failed to comply with requests from the MFDA to provide documents and information for the purpose of investigating a complaint made against him by a client; and, that he failed to carry out an agreement with the MFDA made on Aug. 20, 2003 to provide the MFDA with copies of certain financial account statements on or before Sept. 22, 2003.

As a result, the MFDA panel ordered a permanent prohibition on the authority of Brown-John to conduct securities related business; a fine of $185,000; and, costs of $10,000.