The Mutual Fund Dealers Association has fined an Alberta fund salesman $150,000 and permanently prohibited him from conducting securities for violating the association’s rules.

At a disciplinary hearing in concluded Thursday in Calgary, the hearing panel found that allegations against Tadeusz “Ted” Bytnar, a mutual fund salesperson with Professional Investment Services (Canada) Inc., were established.

The panel found that, in 2003 and 2005, Bytnar engaged in a dual occupation that was neither disclosed to nor approved by PIS by selling or facilitating the sale of an investment product that was not approved for sale by PIS to four individuals, two of whom were clients of PIS.

In 2008 and 2009, Bytnar interfered with the ability of PIS to conduct a reasonable supervisory investigation of his conduct by providing false and misleading responses to the firm in the course of its investigation.

Commencing August 2009, Bytnar failed to comply with a request by MFDA staff that he provide copies of bank statements for the period under investigation.

The hearing panel ruled that Bytnar be permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA firm.

In addition Bytnar must pay a fines totalling $150,000: $50,000 for failure to co-operate with an MFDA investigation; $90,000 for securities related business outside PIS / undisclosed dual occupation; and $10,000 for interfering with PIS’ ability to conduct a reasonable supervisory investigation.

He must also pay costs to the MFDA in the amount of $7,500.

From November 9, 2006 to June 15, 2009, the Respondent was registered in Alberta as a mutual fund salesperson with Professional Investment Services (Canada) Inc. (“PIS”).

On June 15, 2009, Bytnar was terminated by PIS on June 15, 2009 and is not currently registered in the securities industry in any capacity.

IE