A three-member panel of the Mutual Fund Dealers Association of Canada (MFDAC) levied a $150,000 fine against Pitt Meadows mutual fund dealer Michael Robert Breuer on January 8 at a hearing in Vancouver.
The panel determined that allegations made against Breuer were true.
One of the allegations was that Breuer personally guaranteed to compensate a client for any shortfall in the value of that client’s account below $150,000, thereby giving rise to a conflict or a potential conflict of interest between Breuer and his client.
Another allegation was that Breuer engaged in unauthorized discretionary trading by processing two redemptions, totalling approximately $17,400, in his client’s account and depositing the proceeds in that client’s bank account – all without the client’s knowledge, instructions or approval.
The panel imposed the following sanctions on Breuer and advised that it will issue written reasons for its decision in due time:
•a permanent prohibition on the authority of Breuer to conduct securities-related business in any capacity while in the employ of or associated with any MFDAC Member;
•a $150,000 fine; and
•$7,500 in costs.
