A former mutual fund salesperson must pay the Mutual Fund Dealers Association of Canada (MFDA) $200,000 for personal financial dealings with a client and failing to disclose three outside business activities.

Between December 2009 and April 2010, Ioana Beckford, who was a mutual fund sales person in Toronto with WFG Securities of Canada Inc. (now known as Transamerica Securities Inc.), held the power of attorney (POA) for property and personal care for an 80-year-old woman. Beckford met and became friends with the elderly woman through the Quantum Wellness Centre — a skin product and services company Beckford owned and operated prior to becoming an advisor. At the same time, Beckford also became executor and sole beneficiary of the senior’s estate.

According to MFDA documents, the woman opened an account at WFG with Beckford shortly after appointing Bedford POA and executor. Beckford did not inform WFG that she held such designations. It is against WFG’s policies for advisors to be a power of attorney or executor for a client.

In January 2010, the client transferred ownership of her condo to Beckford making them joint tenants. Roughly a month later, Beckford set up a $120,000 home equity line of credit (HELOC) secured against the condo.

Beckford told the client she would invest the borrowed money on her behalf but instead she deposited $100,000 in a personal account. Beckford then applied for a 3-for-1 investment loan and deposited the approved $300,000 in an investment account under her name.

Shortly thereafter, Beckford withdrew another $20,000 from the HELOC, according to the MFDA, and deposited the money in a personal account.

MFDA documents show that the client demanded the HELOC money back once she realized that Beckford had not invested it on her behalf. By 2013, Beckford had repaid $89,000 to the client while WFG repaid the balance of the HELOC.

Beckford has yet to transfer ownership of the condo back to the client, according to the MFDA, but she no longer holds the client’s POA and is neither the executor nor beneficiary of the client’s estate and will.

The MFDA’s investigation also found that between 2009 and 2012, Beckford owned and operated Quantum Wellness Center and that she worked as an office manager for a dental and construction company. At no point, did Beckford disclose to WFG that she worked as an office manager or that she was the owner of Quantum — she did, however, disclose that she sold the company’s products.

The MFDA says Beckford failed to cooperate with the its investigation into this matter.

In addition to the fine, Beckford is permanently banned from conducting business as an employee of an MFDA member and must pay $10,000 in costs.