On January 11, 2017, the Mutual Fund Dealers Association of Canada (MFDA) commenced a disciplinary proceeding in respect of the Respondent, Jason Perry Boldt.

The Respondent was registered as a mutual fund salesperson and he had been working for Global Maxfin Investments Inc. between 2011 and 2014, during which time he recommended that eight clients lend a total of $1.3 million to Spectra Investment Corp. The Respondent had promised 10 per cent annual interest payment and their funds would be used for construction-related activities. In total, the clients lost more than half the money they invested.

On January 10, 2017, the hearing took place in Edmonton, Alberta before a three-person Hearing Panel of the MFDA's Prairie Regional Council. Prior to the hearing, the parties filed an Agreed Statement of Facts (found here) in which the Respondent admitted to facts constituting contraventions of MFDA By-laws, Rules or Policies, for which he could be penalized by a Hearing Panel pursuant to section 24.1 of MFDA By-law No. 1.

In particular, the Respondent admitted that he:

  • between May 2011 and February 2013, engaged in personal financial dealings with clients JH and HH; client SP; clients CS and JS; client TK; and clients HP and PP when he arranged for the clients to loan at least $1,330,000 to a non-arm's length corporation, thereby giving rise to a conflict or potential conflict of interest which the Respondent failed to address by the exercise of responsible business judgment influenced only by the best interests of the clients, contrary to MFDA Rules 2.1.4, 1.1.2, 2.5.1, and 2.1.1;
  • between May 2011 and October 2014, was a director, shareholder and/or principal of three corporations which was not disclosed to, and approved by, the Member, contrary to MFDA Rules 1.2.1(c) (formerly MFDA Rule 1.2.1(d)), 1.1.2, 2.5.1, and 2.1.1; and
  • commencing in January 2015, failed to cooperate with an investigation conducted by Staff of the MFDA, contrary to section 22.1 of MFDA By-law No. 1.

Following submissions from the parties with respect to penalty, the Hearing Panel imposed a fine of $950,000 and costs in the amount of $7,500. The Hearing Panel indicated that it would issue written reasons in due course.

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