A former mutual fund salesperson with IPC Investment Corporation has been fined $15,000 by the Mutual Fund Dealers Association for his involvement in a referral arrangement in which he sold securities to clients that weren’t approved by his firm, among other regulatory violations.

At a settlement hearing in Toronto on Friday, an MFDA hearing panel approved a settlement agreement with Nathan Disenhouse, who was a registered mutual fund salesperson and branch manager in Ontario and Alberta. He worked in a Toronto branch of IPC from 1998 to 2008.

In the settlement agreement, Disenhouse admitted that he:

(a) engaged in securities related business outside of his member firm by selling, referring or facilitating the sale of $730,000 of an investment product that had not been approved for sale by the firm, to 18 individuals, 11 of whom were clients;

(b) did not disclose to investors that he was a shareholder in the company which was, in turn, the sole shareholder of the company offering the investment product;

(c) engaged in a dual occupation that was not disclosed to and approved by the his firm by entering into a referral agreement and referring clients to a third party; and

(d) obtained and maintained blank, pre-signed trading forms in client files and used such forms to process a trade in at least one client account.

Disenhouse has been suspended from conducting securities related business in any capacity while in the employ of or associated with any MFDA member for a period of 10 years; has paid a fine in the amount of $15,000; and has paid costs of $5,000.

IE