The Mutual Fund Dealers Association of Canada (MFDA) announced Aug. 13 that it has permanently banned and fined Harold Magnus Backer $2,745,261.34.
An MFDA disciplinary hearing held on August 8 and 9, 2018 in Vancouver made the findings of misconduct against Backer including “between May 15, 2002 and November 17, 2015, he failed to repay or otherwise account for approximately $719,853.78 that he solicited from at least six clients and one individual to invest in a fictitious mutual fund.
The panel also found that between May 15, 2002 and Nov. 17, 2015, he fraudulently induced at least 10 clients and three individuals to invest in non-existent mutual funds. He also failed to cooperate with an MFDA investigation into his conduct.
In addition to the $2.7 million fine, the MFDA also sanctioned Backer with costs in the amount of $17,875.
Backer, a former Olympic rower, was sentenced this summer to 14 months in jail after pleading guilty to one count of fraud over $5,000.