A Hearing Panel of the Central Regional Council of the Mutual Fund Dealers Association of Canada (MFDA) announced April 17 that it has confirmed sanctions against Sean William Maxwell.
The MFDA found that Maxell engaged in discretionary trading when, on March 9, 2015, he processed a trade in the account of a client and used his discretion to determine the amount and timing of the trade. On the same date he created a note on a MFDA Member's back office system which falsely indicated that he spoke with a client and obtained the client's authorization for a trade. In addition, between Feb. 6, 2015 and March 5, 2015, the MFDA found he failed to create a record of client trade instructions with respect to four trades that he processed in the account of a client.
Failed to cooperate with investigation
Maxwell received a $15,000 fine for the above-mentioned misconduct and was sanctioned another $50,000 for failure to cooperate with MFDA staff during the course of an investigation into his conduct. In addition, he has been ordered to pay costs in the amount of $5,000.
Maxwell has also been permanently prohibited from conducting securities related business in any capacity while in the employ of or associated with any MFDA Member.
During the period of this misconduct, Maxwell did business in the Guelph, Ontario area.