The fine is more than four times the amount he misappropriated
The Mutual Fund Dealers Association of Canada (MFDA) has released the reasons for its decision to impose a $200,000 fine and a lifetime prohibition on Adam Kryn Vandermey, a former dealing representative with Sun Life Financial Services in Ontario.
On Aug. 24, the MFDA issued the penalty against Vandermey after finding him guilty of misappropriating approximately $48,018 from two clients and a bank account he helped set up for a charity golf tournament. The offenses reportedly occurred between December 2013 and August 2014.
He also failed to comply with repeated requests for information and documents made by MFDA staff investigating his case in 2015.
“We determined that a fine of $200,000 (being approximately three times the monies he misappropriated, plus $50,000 because of the failure to cooperate) was appropriate, in addition to a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA member, and a costs award of $10,000,” the MFDA said in a statement.
Explaining the reasons for its decision, the group noted that Vandermey had already left the industry and fled to Nicaragua; he was absent from the hearing on his case and was not represented by counsel. Therefore, the prohibition order on its own would likely have a minimal impact on him.
In deciding on a fine, the panel considered that he had been in a long-standing relationship with one of his victims, whose husband had died not long before Vandermey stole from her. According to documentary and testimonial evidence, he fabricated documents and statements which included Sun Life’s letterhead to mislead the client intentionally. He also deliberately deceived the other victim, as well as an associate who was also responsible for the charity golf tournament account.
“Staff originally suggested that the penalty be a permanent prohibition, a fine in the range of $100,000 to $125,000, and a costs award of between $7,500 and $10,000,” the MFDA said. “However, in response to questions and suggestions from the panel, staff gave argument in favour of the penalty we imposed.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Measures taken to protect seniors from financial exploitation
Errant female advisors face tougher punishments, study finds
On Aug. 24, the MFDA issued the penalty against Vandermey after finding him guilty of misappropriating approximately $48,018 from two clients and a bank account he helped set up for a charity golf tournament. The offenses reportedly occurred between December 2013 and August 2014.
He also failed to comply with repeated requests for information and documents made by MFDA staff investigating his case in 2015.
“We determined that a fine of $200,000 (being approximately three times the monies he misappropriated, plus $50,000 because of the failure to cooperate) was appropriate, in addition to a permanent prohibition from conducting securities related business in any capacity while in the employ of or associated with any MFDA member, and a costs award of $10,000,” the MFDA said in a statement.
Explaining the reasons for its decision, the group noted that Vandermey had already left the industry and fled to Nicaragua; he was absent from the hearing on his case and was not represented by counsel. Therefore, the prohibition order on its own would likely have a minimal impact on him.
In deciding on a fine, the panel considered that he had been in a long-standing relationship with one of his victims, whose husband had died not long before Vandermey stole from her. According to documentary and testimonial evidence, he fabricated documents and statements which included Sun Life’s letterhead to mislead the client intentionally. He also deliberately deceived the other victim, as well as an associate who was also responsible for the charity golf tournament account.
“Staff originally suggested that the penalty be a permanent prohibition, a fine in the range of $100,000 to $125,000, and a costs award of between $7,500 and $10,000,” the MFDA said. “However, in response to questions and suggestions from the panel, staff gave argument in favour of the penalty we imposed.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Measures taken to protect seniors from financial exploitation
Errant female advisors face tougher punishments, study finds
