A Winnipeg investment adviser is under investigation by the Mutual Fund Dealer's Association, months after he was penalized for unsuitable investing by the Manitoba Securities Commission, CBC News has learned.

The latest complaint against Ken Muzik of Wellington West Financial Services Inc. was filed with the MFDA and the commission by Bill Worthington, who said he had entrusted Muzik with his $600,000 pension.

According to Worthington's complaint, Muzik advised him to leverage another $50,000.

"I trusted him completely. That was my biggest mistake," Worthington told CBC News.

Worthington said his investments dropped by more than $300,000, forcing him to sell his house and look for work again.

Worthington alleged that he then discovered the files Muzik kept about him contained false information — his assets and income had been inflated.

As it turned out, Muzik has been under investigation since 2004, and the securities commission has placed him under strict supervision.


Bill Worthington said his investments dropped by more than $300,000. The situation has forced him to sell his house and come out of retirement, he added. (CBC)

"In particular, there were questions about the types of investments that he recommended, and if they were suitable or not," said Doug Brown, the commission's director of enforcement.

In December, Muzik was ordered to pay a $15,000 fine after the commission reprimanded him for unsuitable investing.

Neither Muzik nor the National Bank, which took over Wellington West, has commented on the case.

The latest allegations against Muzik have not been proven at this point.

As for Worthington, he said he hopes to retire again someday.


  • In their complaint to the Mutual Fund Dealers Association, Bill and Leslie Worthington acknowledge that they withdrew monthly income from their investments with Ken Muzik as follows: $3,500 per month in 2006 and 2007; $2,000 per month in 2008; and $2,500 per month after that. They also withdrew lump sum amounts of approximately $45,000. Referring to a meeting they had with Muzik, the Worthingtons also say in their complaint: "Ken knew from day one that the reason for investing with WW (Wellington West) was to generate a monthly income as this was the retirement plan we agreed to. Ken also stated in the meeting that we had also not made any money on our retirement plan in the 5 years of being with WW."
    Aug 22, 2012 11:00 PM CT