A Salmon Arm mutual funds salesman was hit with a heavy fine and banned from conducting business for three years.
The Mutual Fund Dealers Association of Canada ordered Jeffrey D. Mushaluk to pay a fine of $25,000 and imposed a three-year prohibition from conducting securities-related business in any capacity while in the employ of, or associated with, any Member of the MFDA.
Along with the fine, Mushaluk was ordered to pay $5,000 in costs.
According to a report from the MFDA “the respondent (Mushaluk) admitted that between August 2012 and May 2013, he engaged in securities-related business that was not carried on for the account and through the facilities of the member, and acted outside his registration as a mutual fund salesperson, by selling, recommending, facilitating the sale, or making referrals in respect of the sale of shares of a junior mining company listed on the Toronto Venture Exchange to at least 29 clients, contrary to MFDA rules.”
The investors purchased $519,000 worth of shares.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its members and their approximately 83,000 approved persons with a mandate to protect investors and the public interest.