A hearing panel of the Pacific Regional Council of the Mutual Fund Dealers Association of Canada has rejected a proposed settlement agreement with Berkshire Investment Group Inc. concerning former rep, Ian Thow.

The MFDA reports that the hearing panel declined to approve a proposed settlement with the firm, and made no order in the matter. The settlement hearing is now concluded, and cannot be appealed. The MFDA and Berkshire may attempt to reach a different settlement, or the MFDA may issue a notice of hearing concerning the events that were the subject of the hearing.

Last week, the British Columbia Securities Commission’s panel found that Thow perpetrated a fraud, made misrepresentations, traded in securities without being registered, and failed to deal fairly, honestly and in good faith with his clients when he took millions of dollars from his clients to invest in securities that did not exist. The panel has not yet issued sanctions in the case.

The MFDA’s hearing was convened to consider whether to approve a settlement agreement between the MFDA and Berkshire concerning allegations that Berkshire failed to conduct reasonable supervisory investigations of the activities of Thow and to take such reasonable supervisory and disciplinary measures as would be warranted by the results of its investigations.