Majority of misappropriated funds were purportedly to invest in a film production
An advisor has been banned for life and fined more than $700,000 by the MFDA for misappropriating at least $434,000 from four clients.
Christopher John Davies had been registered in Ontario as a dealing rep since 2001. From 2006 to 2017, he was registered in Ontario with Royal Mutual Funds Inc. until he was terminated as a result of the violations. The offences took place while Davies was working in the St. Thomas and London area.
The majority of the money was solicited from the clients – three of which were retired – to purportedly invest in a film production. Instead, much of it was directed to his own account or to repay two of the clients who had grown concerned at the lack of returns.
A total of $25,000 from two of the clients was used to invest in the film production but that was unapproved by the member firm and gave rise to a potential conflict of interest.
Davies was also guilty of three further violations. Firstly, that between May 2015 and July 2017, he entered false or misleading notes regarding his communications with the clients relating to trades on the firm’s back office system. Secondly, that he made false or misleading statements to Royal Mutual Funds Inc. during the investigation and, thirdly, that he failed to co-operate with MFDA staff as part of its investigation.
Davies must also pay costs of $20,000.
