The Mutual Fund Dealers Association of Canada (MFDA) has sanctioned former dealing representative, Darek Jarod Targerson, after Targerson admitted he signed a client’s signature on two account forms before submitting those forms for processing. In an agreed statement of facts, he also admits he created a meeting note that falsely stated he met with his client to obtain the signatures in question.
Registered since January 2013, Targerson was registered in Saskatchewan as a dealing representative with Credential Asset Management Inc. from January 2017 until March 2018. Following that he was registered in Saskatchewan and Alberta as an Investment Industry Regulatory Organization of Canada (IIROC) advisor with Credential Qtrade Securities Inc. from March 2018 until June 2019 when that firm terminated Targerson for his conduct. He is not currently registered in the securities industry in any capacity.
According to the MFDA’s agreed statement of facts, at all material times both firms’ policies prohibited approved persons from signing a client’s name on account forms, regardless of the circumstances. Despite this, Targerson signed his client’s signature on electronic transfer authorization forms that were used to transfer proceeds from a client’s Tax Free Savings Account (TFSA) to their account at another financial institution. Credential confirmed with the client that she authorized the redemptions and that the redemptions from her account were properly deposited at the other institution.
Although there is no evidence of client complaints, loss, or that the underlying transactions were unauthorized, the MFDA also took into consideration the fact that Targerson completed his annual declaration less than two months later, wherein he confirmed his understanding that Credential’s policies and procedures prohibited signature falsification.
Following his admissions and submissions regarding penalties, the MFDA’s hearing panel ultimately fined Targerson $7,500, plus costs in the amount of $6,500.
