The Mutual Fund Dealers Association of Canada (MFDA) announced this week that it is fining and permanently banning former Oakville, Ontario dealing representative, Jay Kim for failing to cooperate with MFDA staff during the course of an investigation.

Between October 2010 and August 2012, Kim was registered with WFG Securities Inc. Between March 2015 and August 2016 he was registered with Shah Financial Planning Inc.

It is alleged that Kim referred a client to Investors Group Financial Services who then submitted falsified documents to Investors Group, in order to apply for and obtain loans and lines of credit. Kim also reportedly submitted a $200,000 loan application that contained fabricated account statements purportedly issued by WFG and Sun Life Financial. (The client did not hold any assets at either firm.)

During the course of its investigation, Kim failed to attend an interview with MFDA staff and failed to respond to several requests that he contact MFDA staff. “As a result of the respondent’s failure to cooperate with staff’s investigation, staff has been unable to determine the full nature and extent of his conduct, including whether he knew the loan documents described above were fabricated, his role in producing the fabricated loan documents, and whether he had knowledge of the falsified loan applications submitted” by the client he initially referred to Investors Group.

In addition to the permanent prohibition from conducting securities related business in any capacity with any MFDA member firm, Kim is ordered to pay a fine of $50,000 and costs in the amount of $5,000.