The Mutual Fund Dealers of Canada has banned a former mutual fund salesman and fined him $500,000 for engaging in personal financial dealings with clients.
A disciplinary hearing in the matter of Luigi Ciardullo was held Tuesday in Toronto, before a hearing panel of the MFDA’s Central Regional Council.
The panel found that the allegations set out in the notice of hearing dated Sept. 11, 2012 had been established.
The MFDA alleged that between March 2006 and November 2010, while he was registered with Ontario-based Addington Financial Corp., Ciardullo engaged in personal financial dealings with clients by accepting a total of at least $385,609 from at least 15 clients, at least $350,209 of which he has failed to repay or otherwise account for.
The MFDA also alleged that Ciardullo made false statements to MFDA staff in April 2009 during an investigation when he stated that he had only engaged in personal financial dealings with one client when he knew that to be an incorrect response, and that he failed or refused to provide documents and information and to attend an interview requested by MFDA staff.
The panel permanently prohibited Ciardullo from conducting securities related business in any capacity while with any MFDA member, fined him $500,000 and ordered him to pay $7,500 in costs.
Ciardullo was terminated by Addington on Nov. 26, 2010.