MFDA punishes dealing reps in three separate cases, with most serious copping a $20,000 penalty
Three advisors have been fined and reprimanded by the MFDA for a number of form violations.
Brian Lundry Sonne, who was registered with Quadrus Investment services Ltd until he was terminated in September, 2019, was fined $20,000. At all material times, he conducted business in the Tecumseh, Ontario area. He is no longer working in the industry.
He admitted he altered and used to process transactions, 21 account forms in respect of 10 clients without having the client initial the changes. Sonne also obtained, possessed and, in some instances, used to process transactions, 37 pre-signed account forms in respect of nine clients. Finally, Sonne cut and pasted client signatures from copies of account forms previously signed by two clients on to a total of three new account forms, and submitted the account forms to his firm for processing.
He must also pay costs of $2,500.
Meanwhile, Cho-Tak “Albert” Lok was fined $15,000 for form violations. Lok was registered as a dealing representative with Investia Financial Services, carrying out business in the Richmond Hill, Ontario area.
He admitted he altered and used to process transactions 11 account forms in respect of 10 clients on the account forms without having the client initial the changes, while he also obtained, possessed and, in some instances, used to process transactions, eight pre-signed account forms in respect of seven clients. Lok most also pay costs of $2,500.
Finally, Adrian George Botescu was fined $12,000 for KYC violations.
Toronto-based Botescu was registered in Ontario with WFG Securities Inc until he was terminated on December 31, 2019. He is not currently registered in the securities industry in any capacity.
He admitted that, on or about May 17, 2018, in response to a supervisory inquiry from his branch manager regarding the suitability of a client’s investment holdings, he altered a client’s investment objective on a KYC account form without having met or discussed the information with the client. He signed the client’s signature and initials on the account form and also created two meeting notes that falsely stated he had met with a client to approve changes to the client’s KYC information. He also signed the client’s initials on the meeting notes.
The final violation involved Botescu misleading his firm during the course of its investigation into his conduct, when he falsely represented to the Member that he had met with a client to approve changes to the client’s KYC information.
He must pay $2,500 in costs.
