Advisor banned for borrowing $3,100 from clients
An advisor has been banned for two and a half years and fined $5,000 for borrowing a total of $3,100 from two clients.
He admitted to an MFDA hearing panel that he borrowed the money and, therefore, engaged in conduct giving rise to a conflict or potential conflict of interest, which he failed to disclose to his company.
He also admitted failing to report to PFSL Investments Canada a garnishment order relating to a small claims court action against him for $5,159.19 at the Manitoba Provincial Court. Subsequently, a Notice of Garnishment was issued against Zamrykut, indicating that he owed $6,317.
The respondent borrowed $2,000 from one client and $1,100 from the second, telling them both he would repay them with interest within a year. Despite repeated requests to repay the money, Zamrykut paid back only $200 before the violations came to light and the member firm compensated the clients for their losses.
Zamrykut must also pay $2,500 in costs.