A Calgary-based financial advisor has been permanently barred from conducting securities-related business and fined almost $1 million after a hearing by the Mutual Fund Dealers Association found the advisor falsified statements and borrowed money from clients.
According to the hearing panel, Guy Edward Dudding was fined $845,600 after it was determined he misappropriated or failed to account for client funds between June 2015 and May 2019.
Borrowed money from a client
Four other allegations, stemming from August 2015 to March 2020, ranged from borrowing money from a client causing a potential conflict of interest, falsifying account statements, making false or misleading statements and failing to co-operate with an investigation by MFDA staff into his conduct.
The MFDA said Dudding received $705,000 from four clients for an investment that Dudding deposited into either his own accounts or the investment account of another client. He has failed to repay or otherwise account for about $645,300 obtained from the clients.
Advisor misled his firm
In addition, the MFDA said Dudding misled his firm about the sources of the clients’ funds deposited into his accounts, made further false or misleading statements during the course of investigations into his conduct and failed to co-operate with the MFDA staff’s investigation.
On May 3, 2019, Dudding, who worked for Investors Group Financial Services Inc., was permanently prohibited from conducting securities-related business in any capacity. Dudding was also registered in Saskatchewan, British Columbia, and Ontario until May 2019.
On top of the fines, Dudding was assessed $20,000 in costs.
