September 15, 2016 - 1:00 PM
SALMON ARM - A mutual fund salesperson from Salmon Arm was slapped with a heavy fine after wrongfully recommending and selling shares for a mining company to 29 clients.
Jeffrey D. Mushaluk was fined $25,000 by the Mutual Fund Dealers Association of Canada and banned from conducting securities related business for three years. He was also ordered to pay an additional $5,000 in costs.
According to an agreed statement of facts, Mushaluk emailed a number of clients in 2012 recommending they purchase shares of Pacific Booker Minerals Inc., a mineral exploration company attempting to develop a property in central B.C.
Based on the recommendations, 29 clients purchased roughly $519,500 in company shares.
The problem, the association says, started with Mushaluk recommending the investment opportunity to clients, and was followed by him giving advice about risks and rates of return, and ultimately facilitating the purchase of the shares when he was not allowed to do so.
At the time, Mushaluk was registered as a mutual fund salesperson with IPC Investment Corporation, a member of the Mutual Fund Dealers Association of Canada. IPC has a referral agreement with an affiliate corporation which allows approved people to refer clients in order for them to buy or sell securities the approved person is not registered to trade or advise in. Approved people are “required to limit their referral-related activities to providing clients with a basic description of the services available” and are prohibited from “providing advice, recommendations or opinions about non-mutual fund investments available through other registrants.”
Mushaluk contravened those rules by recommending the investment, giving advice and facilitating the transactions when he was not registered to do so, the association says.
The misconduct occurred between August 2012 and May 2013 in Salmon Arm.
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