A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has levied a permanent securities trading ban “in any capacity” against a former Calgary-based advisor after he engaged in personal financial dealings with a client – his 82-year-old father.
In engaging in personal financing deals, Ilden Francis Loyola gave rise to a conflict of interest – one that he did not disclose to his company, Investors Group (IG).
According to the MFDA, Loyola’s father, considered a vulnerable investor, held both a RRIF and a TFSA with his son.
One time, Loyola submitted account forms to IG to process a $2,604 cheque from his father’s RRIF account. When the cheque was issued, he endorsed the back of the cheque and deposited the money into his own account.
Cashes second cheque
About a year later, Loyola processed a $25,000-redemption from his father’s TFSA account. He then endorsed the cheque – made out to his father – and deposited that money into his own personal bank account.
In March 2019, Loyola’s father complained to IG that he had not authorized the redemptions, nor had he loaned or gifted any money to his son. When IG began an investigation, Loyola at first refused to cooperate and then offered to reimburse his father the entire amount.
The MFDA then began its investigation. It banned Loyola from conducting securities-related business in any capacity while working for any MFDA member. It also levied a fine of $60,000 and $5,000 in costs.
