The Mutual Fund Dealers Association of Canada (MFDA) has fined another Alberta fund salesman, Stuart Henschel of Alberta, $250,000 for off-book transactions.
According to MFDA documents, between 2007 and 2010, Stuart Henschel worked as a mutual fund salesman in the Calgary area for Vaughan, Ont.-based FundEx Investments Inc. During that time, Henschel sold, recommend, facilitated the sale or referred exempt market investment products to more than 25 clients. FundEx did not approve these exempt securities and was not aware of Henschel’s actions as he took steps to conceal his activities.
In total, clients invested at least $6,346,000 in the exempt securities over the three-year period, according to the MFDA, creating $224,375 in commissions for Henschel.
In addition to the fine, the MFDA permanently banned Henschel from conducting securities related business as an employ of an MFDA member and order him to pay costs of $7,500.