A Saskatchewan mutual fund dealer has been fined $100,000 for selling unapproved securities earlier in the decade.
The Mutual Fund Dealers Association of Canada said Wednesday that Jack Louis Comeau will have to pay that amount and will be banned from working for companies affiliated with the association for 18 months.
Comeau engaged in what the association calls "off-book transactions" — selling unapproved investments totalling $1,167,000 to 24 clients.
He also gave misleading statements to investigators looking into the transactions, an association hearing panel said in its decision, following a hearing in Saskatoon.
'Mr. Comeau’s misconduct was not the most egregious when compared to past cases but it was still very serious, leading us to conclude that a lengthy prohibition is in order and that a fine in the mid-range is appropriate.' - disciplinary panel decision
Comeau told the panel he's already paid a price, having lost clients and some $270,000 in commissions.
The panel deciding his punishment said there was no evidence his clients has lost money over the off-book investment. It also noted some positive comments from clients.
Comeau received $80,000 in commissions for his off-book sales, but has paid back some of that and plans to pay back the rest, the panel was told.
However, a six-figure fine is still appropriate, it said.
"Mr. Comeau’s misconduct was not the most egregious when compared to past cases but it was still very serious, leading us to conclude that a lengthy prohibition is in order and that a fine in the mid-range is appropriate," the panel said in its decision.
Comeau's disciplinary hearing was held in Saskatoon by teleconference on Nov. 14.