A former advisor has been handed a $17,500 fine for misconduct and admonished for his failure to heed a prior MFDA warning.
Nand Kishor Singh Gusain, from October 2008 to May 2017, worked for Investia Financial Services in the Toronto area until the company terminated his registration. He is no longer registered in the securities industry in any capacity.
An MFDA panel concluded that between January 2010 and June 2015, Gusain falsified 16 account forms of eight clients by altering information on the account forms without the client initialling the alterations. He also, from January 2016 and August 2016, obtained, possessed, and in at least one instance, submitted to the firm for processing, five pre-signed account forms in respect of four clients.
The fine was exacerbated by Gusain ignoring both a publication by the MFDA of a warning bulletin to the industry against such conduct and a warning direct to him about similar conduct on a prior occasion.
The MFDA statement said: “We determined that the respondent’s unresponsiveness to the proceedings against him demonstrated that he does not recognize the seriousness of his misconduct. It also demonstrated his unwillingness to comply with the regulation of the securities industry and a lack of remorse for his conduct.”
Gusain was also ordered to pay costs of $5,000.
Meanwhile, an advisor has been prohibited from acting as a branch manager for 12 months and fined $6,250 for a raft of pre-signed forms violations.
John Lucescu, who works for PFSL Investments Canada and was designated as a branch manager between November 2003 and May 2010, and between May 2014 and December 2016, in the Niagara and Whitby areas.
The MFDA ruled that, from April 2010 and March 2016, Lucescu obtained, possessed and used to process transactions 42 pre-signed account forms in respect of eight clients. Also, between June 2014 and April 2016, acting in his capacity as branch manager, he reviewed and approved the use of 36 pre-signed account forms.
He was also ordered to pay $2,500 costs.