The Mutual Fund Dealers Association of Canada has fined Guy Edward Dudding of Lloydminster $990,600 in a penalty hearing into allegations of misconduct which was commenced in May.
The self-regulatory group is also permanently banning Dudding from conducting any securities business on behalf of any MFDA member.
A three-member Hearing Panel of the MFDA’s Prairie Regional Council held remote deliberations on December 17th, before delivering their decision on Monday December 20th.
Dudding faced five allegations and was fined in each matter as follows:
- $845,600 for Misappropriation of funds
- $20,000 for Personal Financial dealings with a client, which gave rise to a conflict or potential conflict of interest
- $25,000 for Providing a Falsified account statement to a client
- $50,000 for Misleading the member, that is the agency to which Dudding was affiliated or MFDA staff
- $50,000 for Failure to cooperate with MFDA investigation.
Dudding also faces costs in the amount of $20,000.
According to the MFDA Notice of Hearing, Dudding from April 2007 to May 2019, was registered in Alberta as a dealing representative with Investors Group Financial Services Inc., a member of the MFDA.
The MFDA documents the five allegations as having taken place between June 2015 and the final matter commencing in March 2020. It details that $705,000 was received from clients by Dudding and that he failed to repay or account for $645,300.
The mutual fund association stated that Dudding conducted business in Lloydminster and his service with Investors Group was terminated in May, 2019. They add he is not currently registered in the securities industry in any capacity.
The MFDA in an email to MyLloydminsterNow states that Dudding has 30 days to file an appeal from the date of the decision. The Notice of Hearing documents five clients. The MFDA says four of them have since been repaid.
On the matter of the fifth client, the Hearing Panel is to release its reasons for decision and is not commenting on that client at this time.
The matter has been referred to the RCMP who have an active investigation as of 2019, according to an RCMP representative.