The Mutual Fund Dealers Association of Canada announced Oct. 22 that an MFDA Hearing Panel held in Toronto has found that five allegations made against Hong Lam, a former advisor and Investia branch manager, have been established.
As a result, the MFDA has permanently banned Lam and fined him in the amount of $250,000, as well as costs of $10,000.
The allegations include that between 2012 and 2015, Lam engaged in securities related business “that was not carried on for the account of the (MFDA) Member and through its facilities by recommending, selling, facilitating the sale of, and/or making referrals in respect of the sale of investments to approximately 24 clients and 3 individuals totaling approximately $2,016,660.” During this time, Lam conducted business in the Richmond Hill, Ontario area.
The MFDA also found that Lam continued in another gainful occupation, which was not disclosed to and approved by the Member. The regulator also found that he had unapproved referral arrangements.
The regulator says that Hong also misled the MFDA Member during an investigation by falsely stating that he had not referred any clients to invest in a real estate and development company. He also failed to cooperate with the MFDA during the course of an investigation into his conduct.