An Ontario mutual fund salesman has been ordered to pay more than $3 million in fines for soliciting funds from clients that he failed to return or otherwise account for.

At a disciplinary hearing today in Toronto, a hearing panel of the Ontario Regional Council of the Mutual Fund Dealers Association of Canada found that the four allegations set out by MFDA staff in the notice of hearing dated March 29 regarding Earl Crackower, of Worldsource Financial Inc., had been proven.

Between January 1994 and October 2003, Crackower had, and continued in, another gainful occupation that was not approved by his firm.

Between January 1994 and October 2003, Crackower solicited and accepted monies from clients in the total amount of $3.4 million, more or less, which he failed to return or otherwise account for.

On Nov. 11, 2003, Crackower misled the MFDA by stating in response to an inquiry from the association that he had only borrowed or solicited monies from one client when he knew that to be an incorrect response.

On July 6, 2004, Crackower failed to attend at the offices of the MFDA and give information for the purpose allowing the association to investigate a complaint made against him.

The Hearing Panel ordered that Crackower be permanently prohibited from engaging in any securities-related business.

It also ordered him to pay $3.5 million in fines, and $7,500 in costs.