Blank/Presigned Forms

Re Durotoye, File No. 201328

A Settlement Agreement was approved relating to the use of partially completed or whited-out signed forms to process trades for 3 clients. Adeolu Durotoye also admitted to approving the use of 30 blank or partially completed KYC forms in his role as Branch Manager. There were no client complaints as a result of his conduct.

Durotoye was suspended from acting as a Branch Manager for a period of 6 months and agreed to pay a global fine and costs award of $5,000.

Unsuitable Leveraged Investments 

Re Gragasin, File No. 201249

At a hearing on the merits, Gragasin and MFDA Staff submitted an Agreed Statement of Facts whereby Gragasin admitted to preparing and submitting account and loan applications forms which he knew contained false or misleading information. He further admitted to failing to fully explain the risks associated with leveraged investments to clients and failing to ensure that a leveraging strategy was suitable for his clients.

Gragasin was suspended from acting as a mutual fund salesperson for a period of 3 years and ordered to pay a fine of $30,000 and costs of $5,000.

Offbook Transactions

Re Young and Andrews, File No. 201324

Two settlement agreements were approved relating to offbook transactions. Young, a branch manager, admitted that he was engaged in business dealings which involved recommending, referring or facilitating the sale of investments not disclosed to or approved by the dealer and without disclosing his personal interest in the investments.

Young was permanently prohibited from acting as a mutual fund sales person and agreed to a fine of $7,500 and costs of $5,000.

Andrews, who was newer to the industry and with whom Young often shared a joint advisor code and referral fees, agreed to a fine of $5,000 and a 3 year suspension.