The Mutual Fund Dealers Association of Canada has permanently banned a mutual fund and insurance salesman and fined him $250,000 for violating MFDA rules and by-laws.
A hearing panel of the MFDA’s Central Regional Council has issued its decision in connection with the disciplinary hearing held in Toronto on February 6 in the matter of Muchoki Fungai Simba.
Simba was fund and insurance salesman with Oakville, Ont.-based Canfin Magellan Investment Inc. from 1998 to Nov. 18, 2009, when he was terminated after a former client informed Canfin that she had previously loaned him $49,000 and that $43,400 remained outstanding.
After his termination, Canfin demanded that Simba return all client files, which he never did.
After Canfin informed the MFDA about the loan, the MFDA commenced an investigation. Despite numerous requests, Simba failed to provide MFDA staff with required information for the investigation.
In its decision, the hearing panel found that Simba engaged in personal financial dealings with a client, failed to return client files and property of Canfin, and failed to provide MFDA staff with information during the course of its investigation.
The hearing panel ordered Simba to pay a $250,000 fine and $7,500 in costs, and imposed a permanent prohibition on him from conducting securities-related business in any capacity while associated with any member of the MFDA.