A Mutual Fund Dealers Association of Canada (MFDA) hearing panel has fined Ontario-based former mutual fund salesperson and insurance advisor $25,000 for conflicts of interest in dealings with a client.
Sandra Levine, 74, worked with Quadrus Investment Services Ltd. between November 2000 and April 2008, according to MFDA documents, and then from August 2008 to April 2010, with London Life Insurance Company. She is no longer registered in any way in the securities industry.
The notice of hearing document states that between Nov. 23, 2006 and Jan. 5, 2010, Levine deposited 45 cheques drawn from an 86-year-old client’s account into her own personal banking account. The cheques totaled $52,300. During that time, Levine falsified the client’s signature on at least 11 cheques. Finally, in June 2008, Levine became a designated beneficiary on the client’s segregated fund account.
In each of these cases, the hearing panel found that Levine was in a conflict or potential conflict of interest between her interests and those of the client. As well, Levine failed to observe high standards of ethics and conduct in the transaction of business.
The conflicts of interest were reported to Quadrus and London Life after one of the client’s daughters was given a power of attorney and requested to see her father’s investment information. Levine claims the cheques were meant as gifts and a reimbursement for meals, groceries and various other items that she had purchased for the client, with whom she had both a business and personal relationship.
In addition to the fine, Levine is also permanently prohibited from conducting securities related business in any capacity while employed or associated with any MFDA members. As well, Levine was ordered to pay an additional $7,500 in costs.