A hearing panel of the Mutual Fund Dealers Association of Canada (MFDA) has permanently banned former Sun Life Financial Investment Services (Canada) Inc. dealing representative, Ronald John Thomas Kowalsky from conducting any securities-related business in any capacity, for any MFDA member firm after it was discovered he was referring clients to a syndicated mortgage investment firm without Sun Life’s knowledge.
Registered from January 1999 until August 2019 when he resigned, the Simcoe, Ontario-area representative admits that between 2013 and 2016 he engaged in securities-related business “not carried on for the account of the member or conducted through its facilities,” when he recommended the sale of syndicated mortgage investments and received compensation for doing so.
In an agreed statement of facts published by the MFDA, Kowalsky admits he introduced clients to the opportunity, discussed terms and features, recommended the investments, provided assurances and attended meetings between clients and representatives of FDS Broker Services to complete the requisite paperwork to purchase the investments. In total, Kowalsky received $12,600 for his efforts. The seven clients and two additional individuals who invested incurred financial losses totalling approximately $260,000.
The misconduct came to light when two clients complained. Following Kowalsky’s resignation a review of his client files also found 19 pre-signed forms for 11 different clients and photocopied signature pages used in three client files.
The hearing panel also considered Kowalsky’s personal circumstances when levying sanctions: The agreed statement of facts states that the 72-year-old receives a pension and drives a taxi for additional income. He has also entered into a consumer proposal with creditors, pursuant to which he was required to sell his home. He currently resides in a rental unit owned by his son where he pays below market rates and is responsible for utilities. “The respondent does not own a home, a vehicle, have any investments or any other significant assets,” the document states. Despite this, the MFDA also fined Kowalsky $40,000 and ordered him to pay costs in the amount of $2,500.
