A hearing panel of the Prairie Regional Council of the Mutual Fund Dealers Association of Canada has fined a former mutual fund salesman with Clarica Investco Inc. $250,000 for violating MFDA rules and by-laws.

Wayne Larson was registered in Alberta as a mutual fund salesperson with Clarica from March 14, 2002 to Sept. 29. 2006.

At a disciplinary hearing in Edmonton on Thursday, the hearing panel found that the three allegations against Larson set out by MFDA staff in the notice of hearing dated July 2, 2008 had been established.

The MFDA alleged the following violations of its by-laws and rules:

• Between September 2005 and September 2006, Larson facilitated investments in the amount of approximately $1.76 million by seven clients in a company, Global Consulting Corp., which investments were not carried on for the account of Clarica or through the facilities of Clarica.

• Between September 2005 and September 2006, Larson directed, or permitted his clients to direct, redemption proceeds from their accounts to his personal bank account or bank accounts under his control, thereby engaging in personal financial dealings with he clients.

• Commencing June 7, 2007, the Larson failed to attend an interview at the offices of the MFDA for the purposes of providing a statement concerning his termination by Clarica.

The hearing panel ordered Larson to pay a fine of $250,000 and $7,500 in costs.

It also banned Larson from conducting securities related business while in the employ of, or associated with, any MFDA member.

Larson was terminated by Clarica on Sept. 29, 2006. He is no longer registered in the securities industry in any capacity.

On June 25, 2007, Clarica changed its name to Sun Life Financial Investment Services (Canada) Inc.

The hearing panel advised that it would issue written reasons for its decision in due course.

A copy of the notice of hearing is available on the MFDA website.

IE