The Mutual Fund Dealers Association has fined a former fund salesman in Ontario $65,000 for borrowing money from a client.
A disciplinary hearing in the matter of Stephen Pigeau was held Tuesday in Toronto before a hearing panel of the MFDA’s Central Regional Council.
The hearing panel found that the allegations set out in the notice of hearing dated Sept. 6, 2012 had been established
The MFDA alleged that in October 2007, while he was registered with Queensbury Strategies Inc., Pigeau borrowed $15,000 from a client, which he did not repay in full until July 2011.
The MFDA said the outstanding loan gave rise to a conflict or potential conflict of interest between the interests of Pigeau and the interests of the client, which Pigeau failed to address.
The MFDA also alleged that Pigeau failed or refused to provide documents, information, and a written statement to the MFDA and to attend an interview requested by MFDA staff during the course of an investigation.
The panel imposed on Pigeau: a permanent prohibition from conducting securities related business in any capacity while in the employ of, or associated with, any MFDA member; a $65,000 fine; and $7,500 in costs.
Queensbury terminated Pigeau in November 2009. He is currently not registered in the securities industry in any capacity.