The Mutual Fund Dealers Association of Canada (MFDA) has permanently banned a former mutual fund advisor from Windsor, Ont. and fined him $100,000 for several rule violations.

The self-regulatory organization announced last week that an MFDA hearing panel found three allegations made against George Popovich in an amended notice of hearing had been established.

Relating to the first allegation, the MFDA panel found that Popovich failed to use due diligence to learn the essential facts relative to six clients and accurately record the essential facts on the clients’ new account application forms.

Concerning the second allegation, the MFDA panel found that Popovich recommended a leveraged investment strategy in the accounts of four clients. As well, he recommended and sold a “return of capital” mutual fund to two clients without ensuring that the leveraged investment strategy and return of capital mutual fund was suitable for the clients.

Regarding the third allegation, the MFDA panel found that Popovich failed to present the leveraged investment strategy and return of capital mutual fund to the clients in a fair and balanced manner.

The conduct occurred between August 2004 and February 2009 when Popovich conducted his business using the approved trade name, The Financial Investment Centre.

In particular, he was registered as a mutual fund salesperson in Ontario from May 23, 1996 to Feb. 26, 2009. During this time, he was registered with three firms: first with Worldsource Financial Management Inc. from May 23, 1996 to Nov. 21, 2003, then with Performa Financial Group Ltd. from Nov. 21, 2003 to June 30, 2006, and finally with Desjardins Financial Security Investments Inc. from June 30, 2006 to Feb. 26, 2009. (Desjardins acquired Performa on June 30, 2006 and terminated Popovich on Feb. 26, 2009.)

The MFDA panel permanently prohibited Popovich from conducting securities related business in any capacity with any MFDA member firm. It also fined him $100,000 and ordered him to pay $50,000 in costs.

Popovich is currently not registered in the securities industry.