MFDA bans, fines former advisor $300K for funds misappropriation

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Among Levesque’s total of four clients — her husband, mother-in-law, aunt and mother — only her husband was a Quadrus investment client. Levesque allegedly redeemed investments, totalling more than $59,000, in the husband’s account without his knowledge after forging his signature.

Similar redemptions occurred in two of the insurance client accounts, and money given to Levesque by the third insurance client (Levesque’s mother) wasn’t invested. The three insurance clients lost more than $144,000, the decision said.

The MFDA’s penalty was based on several factors, taking into account client losses and Levesque’s conduct.

Her conduct “is so egregious” that she “should never be readmitted to the securities industry,” the decision said.

Further, Levesque didn’t co-operate with the MFDA’s investigation — “a significant factor in the penalty,” it said.

It also noted that the Financial Services Regulatory Authority of Ontario “appears” not to have taken enforcement action, which was another factor in the penalty decision.

Also, the penalty may have been higher, but all four clients were reimbursed by the dealer and insurance affiliate, the decision said.

In addition to the ban and fine, Levesque was ordered to pay costs of $20,000.

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