Financial author Jennifer Killins of Waterloo, Ont., has been fined $55,000 and has had her mutual fund licence permanently revoked by the Mutual Fund Dealers Association of Canada. Waterloo Regional Police Service says it is investigating fraud allegations against Killins.
The MFDA approved a settlement agreement with Killins on Nov. 21, 2011, in which she agreed to pay a fine of $15,000 for soliciting funds from clients for her own personal investments, and a fine of $5,000 for failing to provide the MFDA with evidence during its investigation. Killins admits in the settlement agreement that she solicited funds from the client and behaved in a manner that was an actual, or potential, conflict of interest with that client. At that time, her mutual fund licence was suspended for nine months.
The MFDA also gave Killins an additional 60 days from the date of the settlement to provide various documents, including a bank statement to show where monies to repay the client had come from.
Although Killins paid the $20,000 fine on the date of the settlement, she failed to produce the documents within the 60-day period. As a result, the organization permanently revoked her mutual fund license on Jan. 24, and ordered her to pay an additional fine of $35,000.
Between October 2007 and June 2009, Killins solicited $97,966.22 from a client to invest in her own company, Dollars & Sense. She issued the client promissory notes with varying interest rates ranging between 3.5% and 6%. Her firm operated under the umbrella of Interglobe Financial Services Corp., an MFDA dealership based in Windsor, Ont. Killins was a mutual fund salesperson registered with Interglobe from May 9, 2006 to May 25, 2009. Interglobe terminated Killins after discovering she used the funds for her own personal benefit.
In response to additional investor complaints, the Waterloo Regional Police Service has been investigating Killins since October for fraud, says Constable John Costa: “The complaints have been both in and outside the Waterloo area.”
Killins was not aware that she was being investigated by WRPS until informed by Investment Executive.
“Once I learned about the investigation, I contacted the officer, who told me that he would be in touch with me at a later date,” says Killins. She also suspects the complaints may be coming from a company for which she used to work.
As for the MFDA’s order permanently revoking her license on Jan. 24, she says she needed seven more days to come up with the missing documents.
“If I would have known that this would be the outcome, I would have fought harder during the settlement process.” However, she says she has no wish to appeal the MFDA’s decision at this time.
“At this point, I want to move forward and focus on the positive.”
She is the author of a book entitled “Finding the G Spot, A Sassy, Sensible, Entertaining Approach to Finance.” She will be promoting her book across Canada later this year.
“I have a strong advocacy for financial literacy and for it being outside the box,” she adds. “I know it will be an uphill battle continuing to promote my book, but I know my passion will carry me through.”