The Mutual Fund Dealers Association of Canada has withdrawn proceedings against Barry Adams following a review of penalties imposed on him by the New Brunswick Securities Commission.

The MDFA said Thursday that “MFDA staff is of the view that the order and penalties imposed by the NBSC will protect the public and serve as a specific and general deterrent against such conduct in future.”

The commenced a disciplinary proceeding against Adams in a notice of hearing dated April 6, 2009.

MFDA staff alleged that between February 16, 2007 and April 30, 2007 Adams engaged in securities related business that was not carried on for the account of his firm by recommending and facilitating investments in a real estate investment product. As well, Adams failed to disclose his real estate activities to firm.

On July 27, 2009, a panel of the NBSC approved a settlement with Adams staff arising from the same real estate transactions that led to the MFDA’s proceedings.

In the NBSC settlement, Adams agreed that he had violated section 45 of the New Brunswick Securities Act by referring non-accredited investors to the issuer of the real estate investment product and receiving a commission for the referral of such investors. He Adams also agreed the he made misleading statements to NBSC staff.

The NBSC panel ordered that Adams be barred from trading in any securities, other than those beneficially owned directly by him, for a period of 10 years, and ordered him to pay an administrative penalty of $20,000.

IE