A Canadian Investment Regulatory Organization (CIRO) hearing panel has fined former PFSL investments Canada Ltd. dealing representative, Omadai (Amy) Sukhai $213,509, has ordered Sukhai pay investigation costs in the amount of $10,000 and has thrown the former representative out of the mutual fund industry permanently. The sanctions follow after Sukhai borrowed at least $138,509 from a vulnerable client.
To loan Sukhai the money, the recently retired and newly widowed client incurred deferred sales charge fees and withholding taxes to redeem mutual funds in his portfolio – transactions which Sukhai processed. The client also borrowed $1,000 as a cash advance from his credit card to loan the former representative money. Sukhai reportedly used the money to pay her personal expenses.
Between 2017 and 2020 Sukhai also completed annual attestations stating that she understood that she was prohibited from borrowing from a client. By the time the notice of hearing was filed by the regulator the money was not yet repaid.
“On July 15, 2021, client A filed a statement of claim against the respondent for repayment of the monies owed to him,” the notice of assessment states.
Registered for 13 months in 2002 and 2003 and then registered again from January 30, 2007, PFSL terminated the dealing representative in May 2021.