Settlement Agreements Regarding Unsuitable Leveraged Investment Strategies:

Re Lloyd A. Snyder, File No. 201330

On December 8, 2014, the MFDA released notice of its approval of a settlement agreement in circumstances where Lloyd Snyder (the “Respondent”) admitted that he failed to ensure that the leveraged investment recommendations that he implemented in the accounts of at least 15 clients were suitable. The time period in question spanned 2003 through to early 2009. The leveraged investment strategies were the “Smith-Snyder Manoeuver”; and the “Forced Savings Program”. These strategies involved clients borrowing monies to purchase return of capital mutual funds structured to pay monthly proceeds to investors, which proceeds declined due to market conditions. They were therefore insufficient to allow the strategies to perform in a manner the Respondent had represented to clients they would.

The Respondent was subject to a 10 year prohibition from conducting securities related business, a fine of $50,000 and costs in the amount of $50,000. In the event that the Respondent did not pay the fine or the costs, he would be subject to permanent ban without further notice.

A full text of the settlement agreement can be read here.

Settlement Agreements Regarding Falsifying Documents

Know Your Client Forms

Re Donald Cameron Welsh, File No. 201366

On December 8, 2014, the MFDA released notice of its approval of a settlement agreement in circumstances where Donald Cameron Welsh (the “Respondent”) admitted that he falsified the initials of 12 clients on a total of 12 Know Your Client Forms and made changes to the forms, contrary to MFDA Rule 2.1.1. The time period in question spanned December 2009 to November 2012. The Respondent paid approximately $15,000.00 to the Member to compensate them for the additional supervision he required after the matter was discovered.

The Respondent was subject to a fine in the amount of $7,500 and costs of $2,500.

A full text of the settlement agreement can be read here.

Trade Forms

Re Lachman Hassaram Balani, File No. 201402

On January 15, 2015, the MFDA released notice of its approval of a settlement agreement in circumstances where Lachman Hassaram Balani (the “Respondent”) admitted that, between March 2010 and February 2013, he obtained and maintained approximately 89 account and trade forms in 23 client accounts which were signed by clients when the forms were blank or only partially complete, and used the forms to process transactions in client accounts, contrary to MFDA Rule 2.1.1.

The Respondent was subject to a fine in the amount of $10,000 and costs in the amount of $2,500 in accordance with a timeline, which, if breached, would result in immediate suspension until such time as the amounts are paid.

A text of the reasons for decision can be read here, and the settlement agreement can be read here.