A former Abbotsford mutual fund dealer who was pushing a dubious bond investment has been handed a $15,000 penalty and five-year ban from securities-related business by regulators.
Matthew Elliott de Haan’s employment at Sun Life Financial Investment Services ended on Dec. 12, 2018, after they became aware he was soliciting investments into a bond off their books and launched an investigation.
A hearing was conducted by the Mutual Fund Dealers Association of Canada (MFDAC) on Aug. 10, 2021, with the decision published on Sept. 27.
“The purported bond offering can only be characterized as dangerously implausible. It follows that the Respondent’s promotion of the offering exposed prospective investors to a truly severe risk of harm,” said regulators.
“This was more than an example of extraordinarily poor judgment.”
Elliott de Haan had entered into a sales agreement with Impact International Secured Investments Corporation, a B.C. corporation, in October, 2018, agreeing to solicit investors for a 10 per cent commission.
This was done without the knowledge or consent of Sun Life, violating MFDAC’s regulations.
Throughout November, he unsuccessfully tried to get at least seven people to invest, including a client of Sun Life.
Impact provided him with promotional material, which claimed to be structuring a bond to fund a U.S. wind-farm project. To participate, a minimum investment of $500,000 was required.
Impact projected a return of 7468 per cent over seven years, including a $1 million return within a month, an average of $2 million per year in royalties, and $7.5 million per year for three years from royalties from another source.
Impact’s promotional material “should have provoked immediate alarm,” regulators said, because the returns defied “every normal expectation of investment economics.” Even the investment-return calculations on the promotional material were mathematically incorrect.
“Such carelessness in a financial offering is a very bad sign, and it is all the more so when the projected returns are beyond incredible.”
Elliott de Haan’s penalty was mitigated by his full admission of liability and misconduct, and his “constructive attitude” towards the discipline process, which he did without a lawyer.
He testified that he entered into the sales agreement with Impact because he was not earning enough income and was financially desperate.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
