Bruce Mawer, a former mutual fund salesman in Alberta, must pay the Mutual Fund Dealers Association of Canada (MFDA) a fine of $50,000 for engaging in personal financial dealings with clients and off-book transactions.
Between 2006 and 2007, Mawer was working as a mutual fund salesman in the Edmonton-branch of Worldsource Financial Management Inc. During that time, he accepted $103,000 from four clients (two couples), according to MFDA documents. As well, Mawer solicited another $137,316 from four insurance-only clients of his but who were not connected to Worldsource.
Mawer used the money to pool with his own funds and that of a business partner – a real estate agent – to purchase investment properties in Alberta and British Columbia.
In 2007, due to the downturn in the real estate market, some of the properties had to be rented rather than sold while other properties under construction were never completed. Finally, in 2012, all of the properties were in foreclosure, according to the MFDA, and there was no longer any reasonable possibility of the clients’ receiving their principle back.
According to the MFDA, Mawer did not keep proper records of the money he received from clients and Worldsource was never aware of his dealings. Mawer was let go from Worldsource in 2008.
In addition to the fine, Mawer is permanently banned from conducting securities related business with an MFDA member and must pay $7,500 in costs.