The Canadian Press - ONLINE EDITION

Mutual Fund Dealers Association fines salesman $1.5 million

  • Print

TORONTO - A $1.5-million professional disciplinary fine has been levied against a former mutual fund salesman, who at times worked in the Ottawa area for Aegon Dealer Services and its successor Investia Financial Services until his employment there was terminated in early 2011 for an unrelated matter.

In addition to the fine, the Mutual Fund Dealers Association of Canada has also barred Jacques James Scribnock from doing any securities-related business while employed by, or associated with, any of the MFDA's member firms.

An MFDA disciplinary panel found that Scribnock had misappropriated about $860,000 of client money over two years ending March 1, 2011, when his employment at Investia ended, and that he failed to co-operate with the association's investigation of his activities.

According to the panel's decision, the investigation began in August 2011 after Investia received a client complaint that Scribnock had made unsuitable recommendations, engaged in outside business activities with the client and processed unauthorized trades in the client's accounts.

The MFDA said that Scribnock, who did not appear at the panel's disciplinary hearing and wasn't represented there by a lawyer, had set up a company called Stone Securities while working at Investia but without its knowledge. It also says that Scribnock convinced clients that it was related to another investment fund company called Stone & Co. Limited.

The MFDA said that Scribnock recommended that four clients — identified only as AC, NR, BG and GW — purchase investment products offered by his company Stone Securities or invest in Stone Securities.

The panel said Scribnock continued selling Stone Securities to the clients after his employment with Investia was terminated. The MFDA says the money collected after Scribnock left Investia is outside its jurisdiction as the self-regulating organization for the Canadian mutual fund industry.

The panel decision said in the spring of 2013, Scribnock was charged with a number of counts under the Criminal Code by Ottawa police and that the criminal charges have not been resolved and are still pending.

It said the panel had discretion to adjourn because of a pending criminal matter, but decided a stay or adjournment should not be granted in the circumstances of the present case, noting a "regulatory body like the MFDA has a strong interest in proceeding expeditiously in regulating persons connected with the industry." The hearing was held Aug. 13, 2014.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Lindor Reynolds speaks candidly about life with terminal cancer

View more like this

Photo Store Gallery

  • Hay bales sit under a rainbow just west of Winnipeg Saturday, September 3, 2011.(John Woods/Winnipeg Free Press)
  • A Canada goose flies towards the sun near the Perimeter Highway North and Main St Monday afternoon – See Day 10 for Bryksa’s 30 goose project - May 11, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you support Pimicikamak First Nation's protest against Manitoba Hydro?

View Results

View Related Story

Ads by Google