MFDA bans former Royal Bank account managerBy | June 21 2016 11:32AM
The Mutual Fund Dealers Association of Canada (MFDA) has banned Seung Tung (Eric) Ng from the industry after he misappropriated funds from several elderly clients.
Ng was a branch manager with Royal Mutual Funds and a senior account manager with the Royal Bank of Canada (RBC) at a branch in Oakville, Ontario. The MFDA says that between 2011 and 2013 he falsified account documents in order to open mutual fund and bank accounts in the names of several clients without their knowledge. He then processed transactions without their authorisation, redeeming investments and transferring funds into the accounts that he controlled. The regulator says many of the clients were elderly; the oldest one was aged 93. In total, Ng made off with about $55,129.
Unable to compel a response to allegations
Beginning in October of 2013 the regulator's staff made several attempts to contact Ng, but they were unable to compel a response to their allegations. Ng received the MFDA’s documents, which were sent by registered mail, but he went to ground: neither he nor his lawyer made a reply.
On June 14, a three-member hearing panel of the MFDA’s Central Regional Council met and ruled Ng should be permanently prohibited from conducting securities related business in any capacity. He has also been fined $150,000 and ordered to pay costs of $10,000. Given the MFDA's poor track record of collecting penalties and Ng's truculence, it remains to be seen if the regulator will ever receive the money.