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Mutual funds dealer sanctioned
The Mutual Fund Dealers Association of Canada has thrown the book at a former Vernon advisor following a lengthy investigation.
A three-member panel found that Robert Bruce Rush, formerly of Sun Life, engaged in securities related business not pertaining to Sun Life by recommending, referring, selling or facilitating the sale of securities to two Shuswap clients, possibly two other clients and 11 other individuals outside of Sun Life.
Rush also continued in another gainful occupation that was not disclosed to and approved by Sun Life. He failed to comply with Sun Life’s policies and procedures with respect to engaging in outside business activities.
The panel also found Rush failed to cooperate with an investigation.
Rush has been permanently prohibited from conducting securities-related business in any capacity while in the employ or associated with any MFDA member. He was fined $90,000 and ordered to pay costs of $10,000 associated with the investigation and hearings.
“The misconduct is very serious,” wrote the panel in its decision.
“The respondent (Rush) recommended and sold investments that were not authorized by Sun Life. Those investments were later found by the relevant securities commission to be a fraud and an illegal distribution.
“It ought to have been apparent to any trained and qualified investment professional that the investments were entirely inappropriate and ought not to have been sold to anyone.”
The Shuswap couple said they lost their entire investment of $19,000. The incident happened between January and November 2007.
Rush, who had been an approved MFDA member for 32 months, which, according to the panel, constitutes a “moderate level of experience,” had not been the subject of any prior disciplinary proceedings.
Two hearings were held in July and November of 2013. Rush did not appear at either hearing.