Former Alberta mutual fund salesman William Cormylo must pay a $300,000 fine to the Mutual Fund Dealers Association of Canada (MFDA) for off-book transactions.
According to MFDA documents, from October 2006 to February 2011, Cormylo entered into referral and agency agreements with three companies to promote and sell their mortgage investment products. As well, Cormylo sold investments to clients through his own corporation, Cormylo Ventures Inc., without the knowledge of his dealer firm, Vaughan, Ont.-based FundEx Investment Inc.
In total, the MFDA found Cormylo sold investments to at least 25 FundEx clients totaling several million dollars. FundEx never approved any of these investments nor was it aware that any such transactions were happening as Cormylo took steps to conceal his activities.
In addition to the fine, the MFDA also permanently banned Cormylo from conducting securities related business and ordered him to pay costs of $7,500.