The Mutual Fund Dealers Association of Canada (MFDA) has issued its reasons for deciding that former WFG Securities Inc. advisor, Dorothy Gabrysz, should be barred from working with any MFDA member for two years. In its reasons for decision, the hearing panel also confirmed that Gabrysz has paid a fine of $20,000 plus MFDA’s costs of $5,000.
In an earlier settlement agreement, the MFDA says Gabrysz admitted that she prepared and submitted account forms and a loan application for a client which she knew contained false and misleading information. She failed to perform the necessary due diligence to learn the essential facts about the client, and whether or not the leveraged investment recommendations she made to the client were suitable or not. Some years later when the client complained about the investment, Gabrysz then failed to report the complaint to her firm.
Mitigating factors
“There are, however, a number of mitigating factors,” the MFDA says in its reasons for decision. It says the case concerns only one client and is not part of a broader pattern of conduct. Further, they add that Gabrysz has been registered for more than 10 years, and the conduct at issue occurred in the second year of her registration. They also say there is no evidence that her client suffered any financial loss by participating in the strategy Gabrysz recommended.
“The two-year prohibition from conducting securities related business and a monetary penalty of $20,000 are not out-of-line with the new sanctions guidelines or the cases cited to us by counsel,” the MFDA adds. “The monetary penalty and the two-year prohibition provide a significant measure of specific and general deterrence.”
